{"id":1533477,"date":"2022-06-30T11:19:06","date_gmt":"2022-06-30T15:19:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1533477"},"modified":"2022-06-30T11:19:09","modified_gmt":"2022-06-30T15:19:09","slug":"stock-market-sees-worst-first-half-of-the-year-since-1970","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stock-market-sees-worst-first-half-of-the-year-since-1970\/","title":{"rendered":"Stock Market Sees Worst First Half Of The Year Since 1970"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstock-market-sees-worst-first-half-of-the-year-since-1970%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1533477&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The <a href=\"http:\/\/dailywire.com\/topic\/stock-market\">stock market<\/a> has experienced its <a href=\"http:\/\/dailywire.com\/topic\/recession\">worst<\/a> first half of the year in more than 50 years.<\/p>\n<p>As of June 30, the S&#038;P 500 index \u2014 which monitors the performance of 500 large public companies \u2014 fell more than 21% since the first day of 2022. According to <a href=\"https:\/\/www.nytimes.com\/2022\/06\/30\/business\/stock-market-worst-start-50-years.html\">multiple reports<\/a>, the stock market has not seen a worse six months to begin the year since 1970. As a <a href=\"https:\/\/www.dailywire.com\/news\/wall-street-sees-worst-carnage-since-2020\">series of selloffs<\/a> characterized the month of June, a <a href=\"https:\/\/www.dailywire.com\/news\/investment-banks-predict-how-much-more-stock-market-could-plummet\">forecast<\/a> from investment bank Morgan Stanley indicated that the S&#038;P 500 could drop another 15% to 20%.<\/p>\n<p>The dismal <a href=\"http:\/\/dailywire.com\/topic\/wall-street\">Wall Street<\/a> benchmark was set as the United States contends with record-high <a href=\"http:\/\/dailywire.com\/topic\/inflation\">inflation<\/a>, as well as other phenomena eroding consumer and business confidence. The Consumer Price Index (CPI) <a href=\"https:\/\/www.dailywire.com\/news\/here-are-the-products-gutting-your-bank-account-as-inflation-soars\">rose<\/a> 8.6% between May 2021 and May 2022, while the core Personal Consumption Expenditures Price Index (PCEPI) <a href=\"https:\/\/www.cnbc.com\/2022\/06\/30\/feds-preferred-inflation-measure-rose-4point7percent-in-may-near-40-year-high.html\">increased<\/a> 4.7% over the same period.<\/p>\n<p>As a result, <a href=\"https:\/\/www.dailywire.com\/news\/consumer-sentiment-plummets-to-lowest-level-since-1950s\">consumer confidence<\/a> \u2014 as measured by the University of Michigan\u2019s benchmark Survey of Consumers \u2014 fell to its lowest reading since 1952.<\/p>\n<p>\u201cBusiness is a confidence game,\u201d Pershing Square Capital Management CEO Bill Ackman <a href=\"https:\/\/twitter.com\/BillAckman\/status\/1542088840130637824\">commented<\/a> earlier this week. \u201cConsumer confidence is weak because of inflation, not because of the economy. Jobs are plentiful and the economy is strong. The [Federal Reserve] needs to act decisively to kill inflation and inflationary expectations. Then confidence can be restored.\u201d<\/p>\n<p>In an effort to manage high inflation, monetary policymakers at the Federal Reserve are <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades\">hiking interest rates<\/a> \u2014 most recently through a 0.75% increment that represented the boldest move to battle inflation in nearly three decades. Rate hikes increase the cost of borrowing capital, thereby tightening business investment and consumer activity. Earlier in June, Federal Reserve Governor Christopher Waller warned that efforts from the central bank to tackle higher price levels would lead to higher unemployment.<\/p>\n<p>Because personal consumption <a href=\"https:\/\/fred.stlouisfed.org\/series\/DPCERE1Q156NBEA\">accounts for<\/a> nearly 70% of economic activity in the United States, the indicator is closely linked to overall economic performance.<\/p>\n<p>\u201cConsumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines,\u201d Survey of Consumers Director Joanna Hsu said in a statement, \u201cAs higher prices become harder to avoid, consumers may feel they have no choice but to adjust their spending patterns, whether through substitution of goods or foregoing purchases altogether.\u201d<\/p>\n<p>Business leaders are likewise pessimistic. A Conference Board survey of 750 global executives found that over 60% believe a <a href=\"https:\/\/www.dailywire.com\/news\/new-survey-reveals-when-ceos-expect-a-recession-to-hit\">recession will occur<\/a> in their primary region of operations by the end of 2023.<\/p>\n<p>\u201cCEOs are losing confidence because of uncertainty due to the perceived risk of sustained high inflation,\u201d Ackman <a href=\"https:\/\/twitter.com\/BillAckman\/status\/1542094302116909056\">added<\/a>. \u201cThe [Federal Reserve] must act decisively to subdue inflation and inflationary expectations. Then business confidence will be restored.\u201d<\/p>\n<p>Indeed, inflationary pressures are top-of-mind for executives. A JPMorgan Chase <a href=\"https:\/\/www.dailywire.com\/news\/only-19-of-business-leaders-are-optimistic-as-recession-fears-loom\">poll<\/a> released earlier this week shows that business leaders are markedly less optimistic about their industries and their own businesses compared to last year.<\/p>\n<p>\u201cThe first half of 2022 has really tested business leaders with pricing pressures and increased interest rates, on top of the supply chain and labor-related issues they were already facing,\u201d Ginger Chambless, head of research for JPMorgan Chase Commercial Banking, explained. \u201cWhile it\u2019s surprising to see how drastically sentiment has shifted, it is important to note that business leaders are still mostly upbeat when it comes to their companies and areas that they can more directly control.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The stock market has experienced its worst first half of the year in more than 50 years. As of June 30, the S&#038;P 500 index \u2014 which monitors the performance of 500 large public companies \u2014 fell more than 21% since the first day of 2022. According to multiple reports, the stock market has not &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1510513,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1533477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1533477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1533477"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1533477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1510513"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1533477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1533477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1533477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}