User:BoFAJuniorAnalyst/sandbox/2022 Global Market Downturn
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2022 Global Market Downturn refers to an ongoing global stock market bear market which started in early January 2022.
The Dow Jones Industrial Average, fell into correction territory(10% below 52 week highs) on 6 March 2022, The S&P 500 Index on 22 February 2022, and the NASDAQ-100 on 20 January 2022. On 14 March 2022, The NASDAQ entered bear market territory(20% below 52 week highs). Global markets over the following months succeeding January 2022 became extremely volatile. Roughly half of NASDAQ-100 listed securities have declined at least 50%.
Decline
[edit]The global markets began to decline on news of increasing rates of transmission of the Omicron variant of COVID-19. On January 12, 2022, the Bureau of Labor Statistics reported December 2021 inflation at 7.0%[1]. The market continued to decline during the month when January 2022 inflation was 7.5%[2], the highest since January 1982. Due to the rising inflation, United States Federal Reserve Chairman, Jerome Powell announced that several rate hikes to the Federal Funds Rate were needed to cool inflation. On February 23 SPX futures fell about 4% while the NASDAQ briefly declined to it's limit down of 5% on early reports of Russia's Invasion of Ukraine[3]. Russia's MOEX and RTS index declined 51% through February 16 and February 24 When the Russian Federation halted the buying and selling of equity, and prohibited foreign investors from buying or selling Russian assets.[4]
The global markets continued to broadly decline until 14 March, in which the Dow Jones declined 11.6%, crossing into correction territory, The S&P 500 declined 12%, the NASDAQ declined 21% into a bear market.[5]
From 14 March to 29 March the S&P 500 advanced from 4160 to 4610, an advance of nearly 11%. From 29 March until market close on 29 April the S&P had declined nearly 12%, hitting 52-week lows. During month of April, The NASDAQ declined nearly 16%, leading to the index’s worst monthly performance since October 2008. On Friday 29 April 2022 The NASDAQ fell roughly 4.2%[6]
Europe
[edit]The major European indices CAC 30 and DAX 30 briefly entered a bear market intraday on 7 March 2022[7], since recovering most of their losses. The FTSE 100 was the only major index to not enter a correction in 2022.
References
[edit]- ^ https://www.bls.gov/opub/ted/2022/consumer-price-index-2021-in-review.htm
- ^ https://www.bls.gov/opub/ted/2022/consumer-prices-up-7-5-percent-over-year-ended-january-2022.htm
- ^ https://www.cnbc.com/2022/02/24/5-things-to-know-before-the-stock-market-opens-thursday-february-24.html#t2Wmhnxgp
- ^ https://www.cnn.com/2022/02/24/investing/ruble-russian-stocks-crash/index.html
- ^ https://www.cnbc.com/2022/04/28/stock-market-futures-open-to-close-news.html
- ^ https://www.kiplinger.com/investing/stocks/604625/stock-market-today-042922-stocks-close-out-worst-april-in-years-with-another-slide
- ^ https://www.wsj.com/market-data/quotes/index/DX/DAX/historical-prices