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US Stocks Extend Losses Monday         09/26 15:54

   A broad slide on Wall Street extended the major indexes' losing streak to a 
fifth day Monday, deepening a steep market slump amid growing fears of a global 
recession.

   (AP) -- A broad slide on Wall Street extended the major indexes' losing 
streak to a fifth day Monday, deepening a steep market slump amid growing fears 
of a global recession.

   The Dow Jones Industrial Average fell 1.1%, becoming the last of the major 
U.S. stock indexes to fall into what's known as a bear market. The S&P 500 
closed 1% lower and the Nasdaq dropped 0.6%.

   The British pound dropped to an all-time low against the dollar and 
investors continued to dump British government bonds in displeasure over a 
sweeping tax cut plan announced in London last week.

   Markets in Europe closed mostly lower. The head of the European Central Bank 
warned that the economic outlook "is darkening" as high energy and food prices 
pushed up by the war in Ukraine sap consumer spending power. France, the EU's 
second-biggest economy, forecast a substantial slowdown in economic growth next 
year.

   In the U.S., stock indexes have been losing ground, coming off their fifth 
weekly loss in six weeks.

   "Yields are higher, the dollar is stronger and stocks are weak," said Willie 
Delwiche, investment strategist at All Star Charts. "That's been the theme, 
really all year, and intensified a little bit last week and that's playing out 
this week."

   The S&P 500 fell 38.19 points to 3,665.04. The Nasdaq dropped 65 points to 
10,802.92. The Dow lost 329.60 points to close at 29,260.81. The blue chip 
index is now 20.5% below its all-time high set on Jan. 4. A drop of 20% or more 
from a recent peak is what Wall Street calls a bear market.

   Losses were broad and included banks, health care companies and energy 
stocks. Bank of America fell 2.2%, Medtronic dropped 1.6% and Marathon Oil slid 
3.7%.

   Casino and resort operators were a bright spot following reports that the 
gambling center of Macao will loosen travel restrictions in November. Wynn 
Resorts jumped 12%.

   Smaller company stocks fell more than the broader market. The Russell 2000 
dropped 23.71 points, or 1.4%, to close at 1,655.88.

   The latest bout of selling to open the week comes amid an extended slump for 
major indexes. The benchmark S&P 500 is down more than 7% in September. Stocks 
have been weighed down by concerns about stubbornly hot inflation and the risk 
that central banks could push economies into a recession as they try to cool 
high prices on everything from food to clothing. Investors have been 
particularly focusing on the Federal Reserve and its aggressive interest rate 
hikes.

   "We're starting to have a handoff from fears about inflation and the Fed to 
global economic worries," said Mark Hackett, chief of investment research at 
Nationwide. "We've reached a universal degree of pessimism."

   The Fed raised its benchmark rate, which affects many consumer and business 
loans, again last week and it now sits at a range of 3% to 3.25%. It was at 
virtually zero at the start of the year. The Fed also released a forecast 
suggesting its benchmark rate could be 4.4% by the year's end, a full point 
higher than envisioned in June.

   The goal is to make borrowing more expensive and effectively crimp spending, 
which would cool inflation. The U.S. economy is already slowing, however, and 
Wall Street is worried that the Fed's rate hikes will pump the brakes too hard 
on the economy and cause a recession. Higher interest rates hurt all kinds of 
investments, especially pricey technology stocks.

   The yield on the 2-year Treasury, which tends to follow expectations for 
Federal Reserve action, rose significantly to 4.32% from 4.21% late Friday. It 
is trading at its highest level since 2007. The yield on the 10-year Treasury, 
which influences mortgage rates, jumped to 3.89% from 3.69%.

   The recent rise in the U.S. dollar against other currencies is a concern for 
many countries. It dents profits for U.S. companies with overseas business, and 
puts a financial squeeze on much of the developing world.

   Companies are nearing the close of the third quarter and investors are 
preparing for the next round of earnings reports. That will give them a better 
sense of how companies are dealing with persistent inflation.

   Investors also have several economic reports on tap for this week that will 
give more details on consumer spending, the jobs market and the broader health 
of the U.S. economy.

   The latest consumer confidence report, for September, from business group 
The Conference Board will be released on Tuesday. The government will release 
its weekly report on unemployment benefits on Thursday, along with an updated 
report on second-quarter gross domestic product.

   On Friday, the government will release another report on personal income and 
spending that will help provide more details on where and how inflation is 
hurting consumer spending.

 
 
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