Rising interest rates, high inflation, the war in Ukraine and a slowdown in China’s economy have led investors to reconsider what they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers. Big swings have become commonplace and Monday appears to be no exception.
The S&P 500, Wall Street’s main barometer of health, slid more than 2.6% in early trading Monday to 3,800. That's nearly 21% below the high set on Jan. 3. The Nasdaq is already in a bear market, down 31.5% from its peak of 16,057.44 on Nov. 19. The Dow Jones Industrial Average is more than 16% below its most-recent peak.
Last month, the Fed signaled additional rate increases of double the usual amount are likely in upcoming months. Consumer prices are at the highest level in four decades, and rose 8.6% in May compared with a year ago. If customers are paying more to borrow money, they can’t buy as much stuff, so less revenue flows to a company’s bottom line. Stocks tend to track profits over time. Higher rates also make investors less willing to pay elevated prices for stocks, which are riskier than bonds, when bonds are suddenly paying more in interest thanks to the Fed.
While dumping stocks would stop the bleeding, it would also prevent any potential gains. Many of the best days for Wall Street have occurred either during a bear market or just after the end of one. That includes two separate days in the middle of the 2007-2009 bear market where the S&P 500 surged roughly 11%, as well as leaps of better than 9% during and shortly after the roughly monthlong 2020 bear market.
it mean hope all them stock speculators be think qik rich on oil stocks n mortages in us may start flying out windows when bubble burst again n oh boo-hoo u greedy driven abelist what go's around comes around has before n will again pop go's the bubble
It means when ever interest rate go up stocks go down inverse reaction
This means the Liberal/Provincial Governments locked down needlessly, spent into oblivion and because of this the economy is imploding. CV19 was a virus of the MIND and that hysteria just destroyed the Boomer Middle Class.
🤦🏿♂️🤦🏿♂️👆🏾 headlines for newbies, lol yall just start trading the markets been on decline since last year.. we been in a bear market it usually last 14 months
Let's recount what the Fed / Bank of Canada have done to stop inflation, which punishes the lower and middle class more than the rich. Raised interest rates to punish the lower and middle class. Mortgages cost more, investments are worthless. Rich people, unaffected.
buy the dip
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