The S&P 500 just broke a key level.
The market benchmark was down 2% to 5726.42. That’s below its 200-day moving average of 5730.76. The Dow was down 540 points, or 1.3%. The Nasdaq Composite was down 2.4%.
The S&P nearly tested the level during Tuesday’s selloff, but as soon as it neared its 200-day moving average, it rallied from its lows. It’s acted as a key level of support for a market that’s struggling to rally due to fears about the impact of President Donald Trump’s tariffs and signs of cracks in the economy.
The S&P hadn’t tested its 200-day moving average since November 2023, when the market eventually rallied in the face of falling bond yields.
“The S&P 500 has managed to hang onto it its 200-DMA for now, but this morning’s weakness will put that level to the test, a level it hasn’t traded below in well over a year,” writes Bespoke Investment Group co-founder Paul Hickey.