Stock Plunge Nears Bear Territory After Fed Hike
-
-
Published Friday, December 21, 2018 at: 7:00 AM EST
The Standard & Poor's 500 stock index closed Friday at 2416.62, teetering near bear market territory and threatening to end the 10-year bull market, the longest in U.S. history.
The S&P 500 hit an all-time closing high on September 20th, but has swiftly plunged by 17.8% since then, and its near bear market territory.
Friday's loss of 2% on top of Thursday's drubbing of 1.6% came in reaction to the Federal Reserve Board of Governors Chairman, Jerome Powell's, announcement on Thursday afternoon of a quarter-point hike in its key lending rate.
The Fed, months ago, announced its intention to hike lending rates four times in 2018, so the move was widely anticipated.
However, after the double-digit losses sustained in the past 12 weeks, it was unwelcomed by investors.
The Fed's job is not to please Wall Street, the President, or popular opinion. The Fed is just doing its job.
Since the recession ended in the third quarter of 2009 and when the current economic expansion began, the compound annual rate of growth of the U.S. economy was 2.2%, versus the 2.3% in growth expected over the next five years.
Even as the stock market teeters near bear market territory, the 2.5% GDP growth expected over the next five quarters by economists is strong.
This article was written by a veteran financial journalist. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
2023
-
October Inflation Rate Slows, Spending And Income Cool, Making Further Rate Hikes Unlikely
-
A Time Of Money Illusion
-
Good News On Inflation Boosts Stocks For Third Straight Week
-
The Terrible Truth About Investing
-
The Goldilocks Economy Drove Stocks Higher This Past Week
-
The Outlook For Investors
-
More Economic Strength Sent Stocks Lower All Week
-
Four Observations About This Week’s Financial News
-
Not Too Hot Or Too Cold, This Week’s Economic Data Is Just Right
-
S&P 500 Index Lost 2.4% In 3Q2023; Latest Inflation And Economic News
-
Where The Boom No One Expected Gets Its Legs
-
Latest On Inflation, Consumer & Business-Owner Optimism
-
Slower Growth But Economic Outlook Remains Bright
-
Labor Market And Inflation Drove Stocks Higher
-
Costlier Homes Expected To Appreciate 4% Annually For The Next Five Years
-
Leading Economic Index Falls For 16th Straight Month
-
Tax-Sensitive Investment Planning In 2023
-
A Healthy Recipe For Growth Is Simmering
-
Good News About The U.S. Economy
-
The New Bull Market Has Broadened
-
An Economy Goldilocks Would Definitely Live With
-
Monthly Pace Of New-Job Creation Slowed In June, Which Is Good News
-
Standard & Poor's 500 Gained 9.9% In Q2 2023
-
This Week’s News For Investors
