S&P 500 Continues Descent Toward Bear Market

Recession fears continue to push investors to dump equities

Jake Scott

Deputy Editor

May 19, 2022 at 4:34 PM

The Federal Reserve's hawkish stance on combatting inflation continues to drive investors to shed equities, as fears of an oncoming recession swirl. The S&P 500 has taken a beating in response, erasing this afternoon's modest gains to close the session even closer to bear market territory. Elsewhere, the Dow lost more than 200 points, while the Nasdaq pulled back from a triple-digit lead in the final hour of trading to settle in the red as well.

Continue reading for more on today's market, including:

The terms of this fast food giant's exit from Russia.
Unpacking 1 blue chip's dreary 2022 forecast.
Plus, an airline takeover attempt fails; Under Armour's c-suite shakeup; and analyst sours on EV giant.

The Dow Jones Average (DJI - 31,253.13) dropped 236.9 points, or 0.8% today. Though the Dow had another dismal day, six components turned in a win, led by United Health (UNH) 1.5% gain. Cisco Systems (CSCO) shed 13.7% to round out the laggards.

The S&P 500 Index (SPX - 3,900.79) shed 22.9 points, or 0.6% for the day, while the Nasdaq Composite (IXIC - 11,388.50) lost 29.7 points, or 0.3% for the session.

Lastly, the Cboe Market Volatility Index (VIX - 29.35) fell 1.6 point, or 5.2%.

5 Things to Know Today

A bill backed by U.S. House Democrats that aims to stifle price gouging by oil companies was passed by a slim margin today. (MarketWatch)
Twitter will now place warnings labels on misleading content related to the conflict in Ukraine. (Reuters)
JetBlue Airlines' takeover of this budget airline is losing steam.
Under Armour stock stumbles on c-suite shakeup.
Analyst doubts Tesla stock can overcome short-term headwinds.

Gold Prices Score Best Win Since April

Oil prices traded tumultuously on Thursday, but ultimately finished the session higher after Chinese officials revealed plans to ease Covid-19 restrictions in Shanghai. For the session, the now most active, July-dated crude gained $2.85, or 2.7%, to settle at $109.89 per barrel.

Gold futures also scored a win, after investors favored averting risk following yesterday's plunge on Wall Street. Specifically, June-dated gold added $25.30, or 1.4%, to settle at at $1,841.20 an ounce, the biggest single-day percentage pop bullion has seen since April 12.

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