The Dow Jones Industrial Average became the last of the major U.S. stock indexes to fall into what’s known as a bear market Monday as the market deepened its slump amid growing fears of a global recession.
The blue chip index fell 1.1%, while the S&P 500 closed 1% lower and the Nasdaq dropped 0.6% as the indexes extended their losing streak to a fifth day.
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.