THE NEW YORK TIMES: Stocks have slipped for seven consecutive weeks, their worst stretch since 2001. The Federal Reserve’s attempts to bring inflation under control are a big reason stock prices are falling.
Stocks dropped on Friday, pushing the S&P 500 into a bear market for the first time since early in the pandemic, as investors feared the effects of higher inflation, rising interest rates and the risk of a recession.
The S&P 500 was down about 1.6 percent in intraday trading, pushing the benchmark index into bear market territory, a Wall Street term for a 20 percent decline from a recent peak — in this case, since Jan. 3. It is a symbolically important marker of investor pessimism, and the index would have to close the day at this level to officially enter a bear market.
The S&P 500 is also on track for its seventh consecutive weekly decline, an unusually long losing streak.
The pessimism in Wall Street has been prompted by fears about stubbornly high inflation and the Federal Reserve’s plans to increase interest rates in response, which could tip the economy into recession. The pandemic, Russia’s invasion of Ukraine and lockdowns in China have added to these concerns. Stocks cross grim threshold after a long slide. » | Jason Karaian and Coral Murphy Marcos | Friday, May 20, 2022
Big Tech Is Getting Clobbered on Wall Street. It’s a Good Time for Them.:Flush with cash, Facebook, Apple, Amazon, Microsoft and Google are positioned to emerge from a downturn stronger and more powerful. As usual. »
A Weak Euro Heads to an Uncomfortable Milestone: Parity With the Dollar: The euro hasn’t fallen below the one-to-one exchange rate with the U.S. dollar for two decades. But as economic risks grow, more analysts predict deeper lows for the shared currency. »
