Reasons Why the US Stock Market Is Volatile in 2022
- 2 years ago
Reasons Why the US Stock Market , Is Volatile in 2022.
The first months of 2022 have been
exceptionally volatile for the U.S. stock market. .
From January through April,
the S&P 500 fell by 13.3 percent.
Not since 1939 has the
stock market benchmark
experienced such a
dramatic beginning to the year.
With a continued fall equating to nearly
16 percent for the year, .
analysts are seeing signs of a bear market as
the drop approaches the 20 percent mark.
Tech stocks have experienced even steeper declines, with the Nasdaq Composite hovering at a 25 percent loss.
Analysts say part of the reason why the market
has been so volatile has to do with the way the
Federal Reserve has responded to inflation.
Raising interest rates has had a complex effect on the stock market, causing some stocks to fall and others to rise.
For instance, bonds have become more competitive in the present market, causing tech stocks to lose some luster.
Other factors contributing to the difficult market include the war in Ukraine...
... and massive COVID lockdowns
implemented in China, which also
affect the country's production.
So what signs are analysts looking for to predict the immediate and long-term health of U.S. financial markets?.
The rate of inflation is one key factor.
The release of the Consumer Price Index on May 11 has provided some hope that the rate of inflation may have stabilized.
Analysts also point to the markets themselves
and whether certain levels can be maintained
The first months of 2022 have been
exceptionally volatile for the U.S. stock market. .
From January through April,
the S&P 500 fell by 13.3 percent.
Not since 1939 has the
stock market benchmark
experienced such a
dramatic beginning to the year.
With a continued fall equating to nearly
16 percent for the year, .
analysts are seeing signs of a bear market as
the drop approaches the 20 percent mark.
Tech stocks have experienced even steeper declines, with the Nasdaq Composite hovering at a 25 percent loss.
Analysts say part of the reason why the market
has been so volatile has to do with the way the
Federal Reserve has responded to inflation.
Raising interest rates has had a complex effect on the stock market, causing some stocks to fall and others to rise.
For instance, bonds have become more competitive in the present market, causing tech stocks to lose some luster.
Other factors contributing to the difficult market include the war in Ukraine...
... and massive COVID lockdowns
implemented in China, which also
affect the country's production.
So what signs are analysts looking for to predict the immediate and long-term health of U.S. financial markets?.
The rate of inflation is one key factor.
The release of the Consumer Price Index on May 11 has provided some hope that the rate of inflation may have stabilized.
Analysts also point to the markets themselves
and whether certain levels can be maintained