The S&P 500 fell 0.9% on Thursday to 3,785.38 points, closing the first half of 2022 lower by 20.6% for the worst start of the year since 1970. The Dow ended Thursday’s session at 30,775, 43 points, down 15.3% year-on-year for the worst first half since 1962. And the Nasdaq 29.5% drop so far in 2022 marked the worst first half ever recorded. Risk hedging in equities extended to other asset classes, including oil. West Texas Intermediate futures fell just over $ 105 a barrel and closed their first monthly drop since November 2021. Bitcoin prices plunged below $ 19,000. Shares also remained lower during Thursday’s session, as new data reflects still high inflation and falling real consumer spending. Real personal spending fell 0.4% higher than expected in May after rising 0.7% in April, indicating that consumers were falling as prices rose. And while basic personal spending – the Federal Reserve’s preferred inflation rate – has slowed slightly more than expected in May, the measure remains high for almost decades. This is an increase of 4.7% compared to last year compared to the expected increase of 4.8%, according to data from Bloomberg. Core inflation, which includes changes in energy and food prices, also rose slightly less than expected, or at an annual rate of 6.3% to match the April rate. Stocks have been hit hard for months as investors weigh persistently warm inflation against the risks of a recession as the Federal Reserve responds to faster-than-expected inflation. As Wall Street escalated its warnings of a recession, the cyclical sectors most vulnerable to changes in economic activity have been delayed. The energy sector – a leader in early 2022 – was the biggest lag behind the S&P 500, falling 17% in June and still maintaining gains of more than 29% for the year to date. And while all 11 major sectors of the S&P 500 closed in June with losses, the defense healthcare, basic consumer and utility sectors are generally considered more resilient to a recession outperforming them. The story goes on Federal Reserve Chairman Jerome Powell confirmed this week that the central bank’s main goal is to reduce inflation at its fastest pace in more than 40 years, suggesting that this goal will take precedence over maintaining full activity. in other parts of the economy. “Is there a danger of going too far? “There is definitely a risk,” Powell told the European Central Bank’s annual economic policy roundtable in Portugal on Wednesday. “The biggest mistake we can make – let ‘s put it this way – would be to fail to restore price stability.” Earlier in June, Powell proposed either a 50 or 75 basis point increase in interest rates, most likely on the table after the Fed meeting in July. And in the weeks since, several other key central bank officials have confirmed that the latter is likely to be the best option, with inflation and consumer expectations rising. NEW YORK, NY – JUNE 23: Traders work on the floor of the New York Stock Exchange during the morning trading on June 23, 2022 in New York City. (Photo by Michael M. Santiago / Getty Images)
On the go
Shares of Bed Bath & Beyond (BBBY) showed losses after falling more than 23% of the share on Wednesday. The retailer reported that sales in the same store fell more than 20% in the most recent quarter and also announced that CEO Mark Tritton would leave the company and the board, effective immediately and that board member Sue Gove would undertook temporarily. Shares of RH (RH) fell as the furniture company cut its full-year outlook to forecast a decline in revenue, citing “the deteriorating macroeconomic environment” and lower-than-expected demand. RH now sees revenue fall between 2% and 5% this year, compared to a previous sales prospect of steadily rising to 2%. The Constellation Brands (STZ) brand declined even after the publication of the first quarter results of the beverage company that exceeded the estimates for most important measurements. Comparable earnings per share were $ 2.66 versus $ 2.50 expected, according to Bloomberg, and $ 1.9 billion in net beer sales were $ 160 million better than expected.
– Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter. Click here for the latest stock market news and in-depth analysis, including moving stock events Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
