The Dow sheds 300 points and bond yields climb amid warnings about the global economy
Posted On September 23, 2022
US stocks dropped, with the Dow shedding more than 300 points to open Friday’s session.
Goldman Sachs slashed its year-end S&P 500 target to 3,600 on expectations of a hard landing.
Meanwhile, Treasury yields climbed to their highest mark in over a decade on Friday.
US stocks tumbled Friday and bond yields continued to climb amid new warnings on the global economy.
The Dow lost more than 300 points, and each of the major indexes face their fourth losing session in a row. S&P Global’s Purchasing Managers’ Index, a broad gauge of economic health, dropped to 48.2 in September from 48.9 last month, showing that business activity continues to contract.
Stocks are poised for a losing week after the Federal Reserve and a slate of other central banks made policy adjustments to combat inflation. Goldman Sachs slashed its year-end forecast for the S&P 500, and warned that the Fed’s aggressive policy path will lead to further sell-offs in stocks.
“The expected path of interest rates is now higher than we previously assumed, which tilts the distribution of equity market outcomes below our prior forecast,” the bank’s strategists wrote in a Thursday note.
Here’s where US indexes stood as the market opened 9:30 a.m. on Friday: