The S&P 50, the broadest measure of the US stock market, introduced into bear market territory on Friday.
The benchmark is now down 20% from its January high of 4,796.56 and needs to close at or below 3,837.25 for the official start.
“I think you would expect with the Fed raising rates that all these assets, trillions of worldwide, would have to be repriced. But we have to get inflation under control” said James Bullard, President of the Federal Reserve Bank of St. Louis during an exclusive interview with FOX Business.
Bullard reiterated that policymakers are comfortable with raising by 50 basis points at the next few meetings. “I’ve said 50 basis points is a good plan for now. I think, as always, we have to pay attention to incoming data on the economy and on inflation. and we’ll do that going forward” he added.
STOCKS COULD BE IN BEAR MARKET UNTIL 2023, EXPERT WARNS
Earlier this week, both Walmart and Target warned that inflationary pressures were greater than expected. The Dow Jones Industrial Average fell over 1,100 points on Wednesday as investors dialed up the likelihood of a US recession.
Bullard, however, downplayed the chance of a recession this year.
TARGET, WALMART’S INFLATION WARNING BAD OMEN FOR STOCKS, ECONOMY
The S&P 500 joins the tech-heavy Nasdaq Composite, which entered a bear market earlier this year and has fallen 29% year to date.