A bear market may be on the horizon; here’s what that means

Financial Markets

Pedestrians walk by the New York Stock Exchange, Wednesday, May 18, 2022 in New York. Stocks closed sharply lower on Wall Street Wednesday as dismal results from Target renewed fears that inflation is battering U.S. companies. The S&P 500, the benchmark for many index funds, fell 4%. Target lost a quarter of its value, dragging other retailers down with it, after saying its profit fell by half in the latest quarter as costs for freight and transportation spiked. That comes a day after Walmart cited inflation for its own weak results. (AP Photo/Peter Morgan)

NEW YORK (AP) — Investors on Wall Street need a place to hide.

The stock market’s skid this year has pulled the S&P 500 close to what’s known as a bear market.

Rising interest rates, high inflation, the war in Ukraine and a slowdown in China’s economy have caused investors to reconsider the prices they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers.

A bear market is a term used by Wall Street when a market index has fallen 20% or more from a recent high. The S&P 500 is now down 18.2% from the record high set on Jan. 3.

Categories: National News