January was worst month for U.S. stocks since pandemic began

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Not since March 2020 has the S&P 500-stock index fallen as steeply in one month as it just did this January.

it's pumped into the economy and markets. The wide expectation is for the Fed to begin raising interest rates in March, among other moves to make borrowing money less easy.But uncertainty about how sharply and how quickly the Fed will move has helped cause severe swings on Wall Street, not just day-to-day but also hour-to-hour. Morning drops for stocks have quickly given way to sharp losses in the afternoon, and vice versa.

The market may have an even tougher time than usual with this rate-hike campaign, because the Fed is going to be moving when growth for the economy and corporate earnings may be set to slow, say strategists at Morgan Stanley.They pointed to what they see as worrying signs in data about U.S. manufacturing, among other factors.

"By now it should be clear that the strong pivot in monetary policy will make this year very different from last year," Solita Marcelli, UBS Global Wealth Management's chief investment officer for the Americas, wrote in a recent note."Still, we think investors should not lose sight of the fact that the economy remains strong, which should limit downside from current levels.

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