The Market Tanks as Worries of a Recession Intensify: S&P 500 in Worst-Ever Start Through 16 Days

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Wall Street took a nosedive Monday as worries of a recession intensify under Present Joe Biden’s economic policies, rapidly rising inflation and as global supply chain problems continue.

The crypto markets are also taking a beating.

“The cryptocurrency market had around $130 billion wiped off its value over the last 24 hours, as major digital coins continued their multi-day sell-off. On Monday bitcoin fell to as low as $32,982.11, its lowest point since July, according to Coin Metrics. The largest cryptocurrency by market cap was last down 1.6% to $34,623.20,” CNBC reports. “Ether plunged to as low as $2,176.41, its lowest since July, according to Coin Metrics. It last fell 6.3% to $2,263.72. Both are about 50% off their respective all-time highs.”

The S&P 500 has dropped 11% — heading toward what would count as a correction — so far this year. That’s the most on record at this juncture, according to Bloomberg data that goes back over nine decades, though drawdowns have been faster in prior years before quick rebounds, most notably in 2009.

The downturn comes as traders brace for the Federal Reserve to tighten monetary policy and a surge in U.S. Treasury yields weighs on the outlook for stocks. A host of technical signals also suggest that more volatility may be coming up ahead.

“The Fed pulled the punchbowl, liquidity has evaporated, and the S&P and NDX broke below their 200dma for the first time since the Covid outbreak,” said Rich Ross, technical strategist at Evercore ISI.

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