Will The Market Keep Crashing Or Is A Rebound Coming?
During the first half of 2022, the $S&P 500 Index (.SPX.US)$ dropped by 21%, which means that the broad market is technically in bear territory right now, following a drop of more than 20%. This market decline was based on several macro factors and did impact different sectors and industries to a different degree:
Inflation continues to run at an 8%+ rate and is not showing any signs of being transitory so far. This hurts consumer spending power, as less money is available for discretionary purchases when they are forced to spend more on energy, food, etc. At the same time, companies that cannot pass on inflation easily are seeing their margins come under pressure. $Target (TGT.US)$ and $Amazon (AMZN.US)$ are noteworthy examples
All in all, there are thus several macro issues that could continue to hurt the outlook for equities in the near term. It is possible that the S&P 500 and the market overall will continue to pull back in the next couple of weeks and months. That being said, there are also some positive signs when it comes to the longer-term outlook.
All in all, there are thus several macro issues that could continue to hurt the outlook for equities in the near term. It is possible that the S&P 500 and the market overall will continue to pull back in the next couple of weeks and months. That being said, there are also some positive signs when it comes to the longer-term outlook.
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ChartsRNot : Will correct another 10 - 15% before a rebound