Major stock indices reached or neared multiyear lows Monday as the market continues to tank, and the head of the largest bank in the U.S. said the worst may still be ahead.
The U.S. will likely fall into a recession in the next nine months, according to Jamie Dimon.
The tech-laden index fell as much as 1.9% to 10,450 points, its lowest level in more than a year.
Six points from hitting its lowest level since November, the S&P 500 fell 0.6% while the DJIA fell.
It is the fourth day in a row that each index has lost ground as investors fear the worst for stocks as the Federal Reserve sticks by its monetary policy.
Even still, the economy is doing well, but the rate hikes, sticky inflation and socio political uncertainty are likely to put the U.S. in a recession six to nine months from now.
The S&P, which is down 25% year-to-date, could fall another 20%.
The S&P would end the year at 3,600, which is at the high end of predictions by Goldman and Morgan Stanley.
A third of the way done. It is on pace for its biggest loss since 2008. It would be the worst performance since 2008 for the blue chip stock index.
According to one popular marker, the U.S. economy is already in a recession, with its GDP declining over the last two quarters. The Dollar Index, which measures the dollar against a basket of six global currencies, has surged about 20% year-to-date to its highest level in two decades. After several important data points indicated more rate hikes are on the way, the market traded on hopes the Fed would back off of its most aggressive plans, but lost some of its steam and ended the week with a 5% gain.
The Bear Market is Deepening as the Fed Warns Rate Hikes will Trigger Failures.
The World Bank warns of the real danger of a global recession.
The U.S. is likely to go into recession in 6 to 9 months, according to Jamie Dimon of JP Morgan.
Markets are Plummeting because of a better-than- expected jobs report.
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