The benchmark fell over 20% from its January high of 4,796.56 before erasing losses to close at 3,901.36. An official bear market would require the benchmark to close at or below 3,837.25.
"I think you would expect with the Fed raising rates that all these assets, trillions of worldwide, would have to be repriced. But we have to get inflation under control" said James Bullard, President of the Federal Reserve Bank of St. Louis during an exclusive interview with FOX Business' Edward Lawrence.
|I:DJI||DOW JONES AVERAGES||30530.48||-566.78||-1.82%|
|I:COMP||NASDAQ COMPOSITE INDEX||11094.441631||-33.40||-0.30%|
The Dow Jones Industrial Average ended the session little changed, while the Nasdaq Composite slipped by 0.3%.
Bullard reiterated that policymakers are comfortable with raising by 50 basis points at the next few meetings. "I've said 50 basis points is a good plan for now. I think, as always, we have to pay attention to incoming data on the economy and on inflation. and we'll do that going forward" he added.
Earlier this week, both Walmart and Target warned that inflationary pressures were greater than anticipated. The Dow Jones Industrial Average fell over 1,100 points on Wednesday as investors dialed up the likelihood of a U.S. recession.
Bullard, however, downplayed the chance of a recession this year.
The S&P 500 joins the tech-heavy Nasdaq Composite, which entered a bear market earlier this year and has fallen 29% year to date.