Stocks fell on Thursday to end what has been a volatile quarter for all of the major averages. The three major indexes dropped in the final hour of trading. The S&P 500 ended up posting its worst first half of the year since 1970. The Nasdaq Composite, down more than 22% for second quarter, finished its worst quarterly stretch since 2008. The Dow Jones Industrial Average posted its worst quarter since 2020. Bitcoin also posted its worst quarter in more than a decade, as the cryptocurrency dipped back below $19,000.
Pharmacy chain Walgreens Boots Alliance and home-goods retailer RH reported quarterly earnings and issued guidance that pushed the stocks lower and dragged their peers down with them. |
In economic data, the Commerce Department reported Thursday that the core personal consumption expenditures price index, the Fed's preferred inflation measure, rose 4.7% in May versus a year ago. That was slightly below estimates from Dow Jones but still close to levels not seen since the 1980s. While some on Wall Street are optimistic the market will recover during the remainder of 2022 – history has shown that when the market is down more than 15% in the first half of the year, it tends to rally in the back half – others are preparing for lingering inflation and even more monetary tightening by the Federal Reserve.
“The only thing that can sort of save us here is if inflation comes in way lower than expected and the Fed’s is able to back way off on its trajectory on rate hikes,” said Stephanie Lang, chief investment officer at Homrich Berg. “The Fed has made it clear that inflation is their top priority right now, and with inflation as high as it is versus their target it's going to be hard for them to step in and pivot.” |
