The first half of the year was the worst since at least 1970 for the S&P 500 as investors continued to sell off shares due to rising recession fears and the Federal Reserve continued to raise interest rates.
The six-month stretch ended with a day of losses.
The S&P 500 lost 0.8% and the tech-laden Nasdaq gained 1.3% as the stock market finished lower.
The stock market's worst three-month period since the first quarter of 2020 was posted on Thursday.
The stock market closed out its worst first half of a year in over 50 years, as surging inflation, rate hikes from the Federal Reserve and Russia's war inUkraine have all led to rising recession fears.
The last time the stock market declined by more than 20% in the first six months was in 1970 and the stock market rebounded over the next six months.
The price of Cryptocurrencies has crashed over 50% and Big Tech stocks have lost 20% of their value.
In spite of the broad selloff this year, energy stocks like Occidental Petroleum, along with some healthcare and consumer names such as Bristol-Myers Squibb, have performed better than the rest of the market.
The worst half of the year since 1970 has been caused by a global central bank effort to fight inflation. The last trading day of the quarter is crazy because so many investors are getting rid of recession stocks.
After Morgan Stanley warned of weak demand and rising costs in the industry, shares of Carnival, Royal Caribbean and Norwegian Cruise Line lost 5% or more. The retail stocks were hit hard by the profit warning from the furniture chain.
According to CFRA Research, it took 161 days for the stock market to fall from its high in January to its low in June. It could be good news for markets, as a quicker descent into a bear market tends to mean more falls followed by a rebound.
The risks of inflation, geopolitics, monetary policy, and the rising risks of a looming recession have forced investors to reexamine valuations. After marching to new records last year, stocks have suffered serious technical damage that will take time to repair.
These are the best and worst performing stocks of the year.
The bear market could recover faster than the stock market.
Morgan Stanley is worried about potential stock wipeout.
Consumer confidence is hitting a new low and the recession fears are still going strong.
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