New sales gale on Wall Street. The S-Index
New day of strong sales on Wall Street. The Dow Jones, with a drop close to 2%, puts the 30,800 points in danger; the Nasdaq leaves another 3% and the S
Investors had tempered the selloff of late by clinging to factors such as S-Index resistance
Last Friday, just a few hours after the unexpected new ceiling in US inflation, the S
From Bankinter they pointed out that the entrance of the S
Today’s opening has erased all the cushion that kept the S
The increase of 8.6% in the US CPI, the highest in 40 years and higher than expected, has reinforced expectations of an even more aggressive path in the Fed’s rate hikes. Some analysts do not now rule out a rebound of 75 basic points in the next meetings. The greater tightening of financing conditions, in turn, accentuates fears about the magnitude of the slowdown in the economy.
The entrance of the S
The most recent precedent took place in March 2020, when the outbreak of the crisis unleashed by the coronavirus collapsed indices such as the S
Statistically, entering a bear market does not usually stop declines. Bespoke data shows that losses reach an additional 12% on average after losing 20% from highs, to bottom, on average two months after exceeding the 20% drop threshold.
The materialization or not of the recession plays a key role in the duration and intensity of the falls. According to Bespoke, with data collected since 1945, when a recession occurs, bear markets last 449 days with average losses of 35%, while bear markets that do not precede a recession last 198 days and record declines of 28%.
