The Dow is on track for its worst month since March 2020

New York
CNN business

September has been a terrible month for stocks. The Dow is on track to drop more than 7%, its worst monthly decline since March 2020, when pandemic lockdowns began in the United States. The index was also in the red on Friday.

The Dow, the American stock barometer that includes giants like Apple ( AAPL ), Coca-Cola ( KO ), Disney ( DIS ), Microsoft ( MSFT ) and Walmart ( WMT ), fell nearly 100 points. or 0.3%, in midday trading.

Concerns about rising inventory levels in Dow component Nike ( NKE ) dragged blue chips lower on Friday. Shares of Nike ( NKE ) fell 12% as investors worried about how it might have to discount some sneakers and sportswear.

The Dow fell more than 5% in the third quarter, and is down about 20% this year, putting it in a bear market. The Dow is trading near its lowest level since November 2020.

The S&P 500, which was flat on Friday, is down 8% in September and is down nearly 24% in 2022. That puts the index on track for its worst annual decline since 2008. The tech-heavy Nasdaq Composite rose 0.5% on Friday. but this month it’s down 9% and this year it’s down more than 30%.

Some market experts are hopeful that the worst may soon be over for stocks, given how sharp the selloff has been. But investors remain nervous about the economy and earnings.

Inflation has led the Federal Reserve to raise interest rates dramatically. This could eventually slow consumer and business spending. Concerns about a recession are growing.

The CNN Business Fear & Greed Index, which measures seven indicators of Wall Street sentiment, is showing Extreme Fear levels. And investors have had no safe haven to ride out the market storm. Bonds, gold and bitcoin are down in 2022 as well.