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US Stocks Mixed, Dow Enters Bear Market09/27 15:51

   A wobbly day of trading on Wall Street ended with a mixed finish for U.S. 
stock indexes Tuesday as markets stagger amid worries about a possible 
recession.

   (AP) -- A wobbly day of trading on Wall Street ended with a mixed finish for 
U.S. stock indexes Tuesday as markets stagger amid worries about a possible 
recession.

   The volatile trading comes a day after a broad sell-off sent the Dow Jones 
Industrial Average into a bear market, joining other major U.S. indexes.

   The S&P 500 slipped 0.2%, its sixth consecutive loss. The benchmark index 
had been up 1.7% in the early going before a midafternoon pullback. The Dow 
fell 0.4%, while the Nasdaq composite wound up with a 0.2% gain.

   Major indexes remain in an extended slump. With just a few days left in 
September, stocks are heading for another losing month as markets fear that the 
higher interest rates being used to fight inflation could knock the economy 
into a recession.

   "The market right now is pricing in slower growth in the near term because 
of higher interest rates and inflation that's been persistently hotter for 
longer than expected," said Lindsey Bell, chief markets and money strategist at 
Ally Invest.

   The S&P 500 fell 7.75 points to 3,647.29. The Dow dropped 125.82 points to 
29,134.99. The Nasdaq rose 26.58 points to 10,829.50.

   The S&P 500 is down roughly 8% in September and has been in a bear market 
since June, when it had fallen more than 20% below its all-time high set on 
Jan. 4. The Dow's drop on Monday put it in the same company as the benchmark 
index and the tech-heavy Nasdaq.

   Central banks around the world have been raising interest rates in an effort 
to make borrowing more expensive and cool the hottest inflation in decades. The 
Federal Reserve has been particularly aggressive and raised its benchmark rate, 
which affects many consumer and business loans, again last week. 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 percentage point higher than it envisioned in June.

   Wall Street is worried that the Fed will hit the brakes too hard on an 
already slowing economy and veer it into a recession. The higher interest rates 
have been weighing on stocks, especially pricier technology companies, which 
tend to look less attractive to investors as rates rise.

   Losses in household goods makers, communications companies and utilities 
stocks outweighed gains elsewhere in the market. Procter & Gamble fell 2.7%, 
Disney lost 2.3% and Edison International fell 2.9%.

   Energy stocks gained ground as U.S. oil prices rose 2.3%. Exxon Mobil rose 
2.1%.

   Small company stocks held up better than the broader market. The Russell 
2000 added 6.63 points, or 0.4%, to close at 1,662.51.

   Bond yields were mostly higher Tuesday. The yield on the 2-year Treasury, 
which tends to follow expectations for Federal Reserve action, fell to 4.31% 
from 4.34% late Monday. It is trading at its highest level since 2007. The 
yield on the 10-year Treasury, which influences mortgage rates, rose to 3.98% 
from 3.93%.

   Fears of a recession have grown as inflation remains stubbornly hot. 
Investors will be watching the next round of corporate earnings very closely to 
get a better sense of how companies are dealing with inflation. Companies will 
begin reporting their latest quarterly results in early October.

   Investors are also closely watching the latest economic updates. Consumer 
confidence remains strong, despite higher prices on everything from food to 
clothing. The latest consumer confidence report for September from The 
Conference Board showed that confidence was even stronger than expected by 
economists.

   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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