It's been a vicious 6 months for stocks. Here's what the grim markets are signaling
All that whipsawing on Wall Street reflects real nervousness among investors. They're worried the Fed may tip the U.S. economy into a recession. First it was risky names, now it's most stocks.
This has been the worst start to a year for stocks in more than half a century.
A record-setting run fueled by cheap money has ended, and Wall Street is having a hard time adjusting to a new reality. With the Federal Reserve aggressively hiking interest rates to fight high inflation, the economic landscape has changed dramatically.
At the mid-year point of 2022, the tech-heavy Nasdaq has fallen by almost 30% and the broad-based S&P 500 is down by around 20% in the first six months of the year. Both indexes are in bear market, and . Year to date, it is down about 15%.
