S&P 500 posts worst first half since 1970

by | Jun 30, 2022 | World

The selloff in stocks deepened after weak consumer-spending data fueled worries about a recession, with the S&P 500 suffering its cruelest first-half since Richard Nixon’s presidency.It was a rout for the history books, with the benchmark gauge down 21% in the first six months of the year — the most for such a span since 1970. The superlatives kept piling up across Wall Street, with 10-year US yields plunging to about 3% from a decade-high of 3.5% in mid-June. The dollar had for its best quarter since 2016. The nearly 60% drawdown in Bitcoin since the end of March was the largest since the third quarter of 2011.
US consumer spending fell for the first time this year, suggesting an economy on somewhat weaker footing than previously thought amid rapid inflation and Federal Reserve hikes. A view that central banks need to act fast because they misjudged inflation has roiled markets, with traders ramping up bets the economy will buckle under aggressive tightening.
“The stagflation that has gripped our country right now is going to make it tough on the stock market over the intermediate term,” said Matt Maley, chief market strategist at Miller Tabak. “When demand is not the key reason why inflation is a problem, …

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