On Monday, the Dow Jones Industrial Average, considered the Wall Street’s most seasoned stock index, fell another 1.1%, continuing the downtrend from its January maximum to more than 20%. This drop is consistent with the definition of the bear market.
The Federal Reserve's battle against inflation over the past decade is causing the U.S. economy to decline that, in turn, provokes the country’s stock market falling.
As the S&P 500 and Nasdaq indices are down 23% and 32%, respectively, from their all-time highs, evidence for the Dow Jones moving into a bear market is the latest frontier of market shocks this year.
Although the Dow Jones Industrial Average, covering the 30 largest U.S. corporations, is considered more narrowly focused than the others, it’s traditionally the one Wall Street keeps a close eye on.