Investors Punish Showbiz Shares In Broad Market Plunge On Inflation, Interest Rates, War

The S&P 500, down more than 3% in late morning trading, fell into bear market territory on Monday — defined by a drop of more than 20% from its most recent high — with little upbeat news on the horizon and not much good news. There are three major fronts going on: rising inflation, rising interest rates and the Russo-Ukraine war.

The Nasdaq, with its high concentration of technology stocks, has been in a bear market for months.

DJIA Now 700 points are down, at least from their lows, and the Nasdaq and the Russell 3000 are also in the red in the move, echoing huge losses after inflation hit a 40-year low on Friday. This is one of the toughest parts of the market and the worst start in years as inflation ravages consumers and companies alike with wars that cause disruption, including global energy Market and grain supply.

A series of interest rate hikes by the Federal Reserve to cool things down has had no apparent effect. The Fed will begin its latest two-day meeting on Tuesday, where it was expected to raise rates by half a percentage point for the second month in a row. But now it appears the central bank was behind the curve on rates and is considering a bigger hike when it announced a Wednesday.

The balancing act is that if interest rates become too high that could push the country into recession.

Every sector is also being punished for crypto sinking (Bitcoin was at its lowest level since late 2020).

In media, Warner Bros. Discovery and Paramount are down more than 7%; 6% off AMC Networks and Netflix, 5% off Lionsgate, Disney 4%, Fox up 3% and Comcast 2%.

Roku, Fubo and Snap are all down about 10%. Amazon, Meta Alphabet and Apple are at the bottom, with Amazon being the highest.

Despite a stellar box office with two big summer tents, the exhibitors are getting punched. Jurassic World Dominion And Top Gun: Maverick It is continuously rocking the global box office. AMC Entertainment is 10% off, Imax 7% and Cinemark & ​​Marcus is 5% and 3% off respectively.