UPDATE 1-Dow poised to confirm bear market as recession fears mount

Reuters

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 (Updates with details on Dow falling 20% below its record
closing  that would confirm a bear market)
    By Medha Singh
       Sept 23 (Reuters) - The blue-chip Dow Jones Industrial
Average  .DJI  fell 20% from its peak close in January and was
on track to confirm a bear market on Friday, as investors
shunned risk assets on fears of a recession triggered by a rapid
pace of interest rate hikes.
    If the index closes 20% below its all-time closing high of
36,799.65 points hit on Jan. 4, it would confirm a bear market,
according to a widely used definition.
    The Dow would be the last of the three main indexes to
confirm a bear market. The S&P 500 hit that milestone in June
and the Nasdaq in March.
    The three main indexes were also testing their June lows, a
fall below which would push them to the levels last seen nearly
two years ago. The Dow and the S&P 500 hit a near two-year low
during the session on Friday.
   The renewed selling pressure comes in a week that saw the
U.S. Federal Reserve raise interest rates by three-quarters of a
percentage point for a third straight time this year and a vow
to keep going until inflation is tamed.    
    It has been a tumultuous year for Wall Street with Russia's
invasion of Ukraine also adding to investors woes. 
    The Dow is down 19% this year, while the S&P 500 has lost
23% and the Nasdaq has shed 31%.
    Heightened fears of a U.S. downturn next year and its impact
on corporate profits has prompted brokerages to downgrade their
year-end price targets for the S&P 500.  urn:newsml:reuters.com:*:nL4N30U1ED 
    At 13:00 p.m. ET, the Dow Jones Industrial Average  .DJI 
was down 597.85 points, or 1.99%, at 29,478.83, the S&P 500
 .SPX  was down 79.06 points, or 2.10%, at 3,678.93, and the
Nasdaq Composite  .IXIC  was down 231.84 points, or 2.09%, at
10,834.96.
 (Reporting by Medha Singh in Bengaluru; Editing by Shounak
Dasgupta and Shinjini Ganguli)
 ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))

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