The worst financial opening of a calendar year in decades ended on Thursday.
Everything from U.S. stocks and emerging markets to bonds and cryptocurrencies ended the first six months of 2022 down, the Wall Street Journal reported. The declines were largely due to investor concerns about aggressive interest rate hikes the Federal Reserve is using to combat accelerating inflation, Yahoo Finance reported.
“That’s the biggest risk right now – inflation and the Fed,” Katie Nixon, chief investment officer of Northern Trust Wealth Management, told the WSJ.
The Dow Jones just had its worst 6 months to start a year since 1962.
The Nasdaq is the worst ever.
The S&P 500 is the worst since 1970.
— RNC Research (@RNCResearch) June 30, 2022
Since the start of 2022, the Dow Jones Industrial Average is down more than 15%, the S&P 500 more than 20% and the Nasdaq nearly 30%, CNBC reported. Investment-grade bonds lost 11% in the first half of 2022, according to the WSJ, and the cryptocurrency lost 60% of its market capitalization during the same period, Technext reported. (RELATED: Consumer expectations for the economy hit their lowest point in a decade)
Although financial markets do not directly measure the overall health of the economy or gauge the labor market, these losses have weighed on both Americans’ daily savings and hedge fund profits, the report reported. WSJ.
Commodities were the only assets that ended the period up from their starting point, with oil hitting over $108 a barrel and gas costing over $5 a gallon across much of the country. This anomaly is due to Russia’s invasion of Ukraine which reduced the world’s oil supply, according to the WSJ.
When the S&P 500 fell 15% or more in the first six months of the year, as it did in 1932, 1939, 1940, 1962 and 1970, it rebounded rising an average of 24% in second half, according to the WSJ.
Nixon did not respond to a request for comment from the Daily Caller News Foundation.
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