Month: September 2022 Articles

Last week stocks recorded a second week of pronounced losses after Federal Reserve policymakers revealed that they expected official short-term interest rates to continue going sharply higher over the next several months. The Dow Jones Industrial Average and S&P 400 Midcap Index fell to new intraday lows in late 2020, while the S&P 500 Index, small-cap Russell 2000 Index and Nasdaq Composite managed to stay slightly above their bottoms in mid-June 2022.

Last week, stocks fell sharply as inflation fears intensified and short-term bond yields reached levels last seen in 2007. The S&P 500 Index recorded its most significant weekly drop since mid-June and hit its lowest point on an intraday basis since mid-July. Growth stocks fared worst, with the technology-heavy Nasdaq Composite falling nearly 5.5%. Communication services and information technology shares led the declines within the S&P 500 as Google parent Alphabet and Facebook parent Meta Platforms hit new 52-week lows. Industrials and materials shares were also fragile.

Last week stocks broke a string of three weekly losses as investors appeared to grow more confident that the market had reached at least a temporary bottom after surrendering about half of its summer rally.

Last Week In ReviewLast week stocks finished lower as investors continued to digest the implications of hawkish messages from Federal Reserve officials. The S&P 500 Index extended the daily losing streak that began with Fed Chair Jerome Powell’s August 26 speech...