The ‘Market’ gambler’s are being beatdown by an American Economny that is doing two things at once?
Inflation and ac coming Recession….
Everywhere they look, stock investors see trouble ahead.
Runaway inflation, and the interest rate increases meant to contain it, will make life harder for consumers. A severe Covid lockdown in China and the invasion of Ukraine are adding to disruptions in the flow of goods across borders, contributing to rising food and energy prices, and threatening corporate profits.
On Wall Street in April, it all seemed to build to the same conclusion: The economy is about to take a hit.
That fear led to the S&P 500’s worst monthly decline since the March 2020 panic over the coronavirus. After a 3.6 percent plunge on Friday, the index was down 8.8 percent for the month. Stocks are now down more than 13 percent in 2022.
The blow was softened a little by earnings reports from companies, including some of the most influential technology firms, like Microsoft and Facebook’s parent, Meta Platforms, that pleased investors. The job market and data on consumption also continued to show signs of resilience.
But analysts say that Wall Street’s pessimism isn’t likely to end until the major concerns are resolved, and when that will happen seems impossible to know….