The Strategist

S&P 500 index closes near two-year low

09/28/2022 - 10:43

As U.S. Federal Reserve officials stated they are prepared to hike interest rates further, even if it results in an economic slowdown, Wall Street entered bear market territory and the S&P 500 stock index finished at a nearly two-year low on Tuesday.

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From its record close on January 3, the S&P 500 was down 24%. Earlier, the Fed gave a warning that high interest rates might last until 2023. The broad market index recorded its lowest closing level since November 2020 after giving up all of the gains made during the summer rise.

The S&P 500 saw its longest losing streak since February 2020 as it declined for a sixth straight session.

Earlier on Tuesday, Chicago Fed President Charles Evans said the Fed would need to raise rates by at least one more percentage point this year while St. Louis Fed President James Bullard expressed support for additional rate hikes at upcoming meetings.