The sell-off of U.S. stocks in 2022 gained intensity Monday as investors dumped risky assets like equities in anticipation of a less friendly Federal Reserve.
The Dow Jones Industrial Average lost more than 1,000 points at one point and the S&P 500 pulled back more than 10% from its record close Jan. 3.
The Dow Jones Industrial Average fell about 680 points, or 2%, falling for a seventh straight day. At its lows of the day, the blue-chip index shed about 1,115 points. The S&P 500 lost 2.2% and headed for its worst month since March 2020. The benchmark is down more than 10% from its intraday high. The Nasdaq Composite declined 2%, falling deeper into correction territory down more than 16% from its intraday high.
“I think there’s more pain to come,” said Wharton School finance professor Jeremy Siegel on CNBC’s “Squawk Box.” “When a bear market comes, it doesn’t spare the good stocks or the bad stocks. I mean, they all go down.”
Monday’s pullback put the S&P 500 down roughly 10% this month, on pace for its worst January performance on record. The Dow was also headed for its biggest one-month loss since March 2020, falling more than 7%. The Nasdaq, meanwhile, has dropped about 14% in January and is on pace for its worst month since October 2008 — when it plunged 17.7%.