The S&P 500 dropped 3% and has now fallen 18.7% from its Jan. 3 all-time high. A slide of 20%, which it touched Friday before bouncing back, signifies a bear market. The Dow Jones Industrial Average declined 2.9%, its eighth consecutive week of losses, matching its longest losing streak since 193
U.S. stocks had another horrible week and suffered heavy losses, with the Nasdaq 100 falling4.45% and the S&P 500 dropping 3.05% over the last five trading sessions. The year has been brutal for equities, but to put numbers on it, the Nasdaq 100 has plunged nearly 28% in 2022 amid broad-based tech sector weakness, sparked by growing headwinds for the economy, including rising real rates, red-hot inflation, and rapidly cooling economic growth. The S&P 500 has also sold off, briefly entering bear market on Friday after setting a new 2022 intra-day low at 3,810, a move that saw the index rack up a more than 20% drop from its January peak.By Friday's close, however, the top benchmarkerased its daily decline and no longer met the official definition of a being in a bear market.
In any case, risk appetite has plummeted of late as sentiment has turned very bearish on fears that the Fed may not be able to engineer a soft landing as it pursues an aggressive tightening cycle aimed at restoring price stability and, of course, credibility.
What is your economic outlook right now?
Comments