September was disastrous for stocks

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Stock Market Economy_Business roundup

All three major stock market indexes dropped during a bearish September as recession fears grow and interest rates increase. It was the worst September for the S&P 500 since 2002. $9 trillion dollars of Americans’ net worth in stocks had already been lost during the first six months of the year, and September brought new lows for stocks across sectors.

All three major indexes lost in September as Wall Street is increasingly concerned about the likelihood of a global recession.

The S&P 500 lost over nine percent. The S&P 500 hit its low of the year on Friday and enters October 3, 2022, at 3.585.6, which is down from its 52-week high of 4,818.6

The Dow Jones index is at 28,725.5. That is down from its 52-week high of 36,952.6.

The NASDAQ is at 10,575.6. That is down from its 52-week high of 16,212.2.

All three indexes have lost more than 20 percent of their value over the year, with the NASDAQ losing over 30%. The crashing markets have hurt almost every investor, whether they are saving for college, retirement, starting their own business, or supporting charities or other nonprofits.

Inflation is cutting into the purchasing power of American consumers, with food prices soaring. Gas had risen to over $5.00 a gallon due to the War in Ukraine, a post-COVID reopening global economy, and dubious changes to American energy policy. President Joe Biden responded to the rising energy prices by releasing fuel from America’s strategic reserve, but those resources are rapidly running out, meaning that fuel prices are expected to rise in the short term.

The tight labor market, rising fuel prices, the war between Russia and Ukraine, and lingering supply chain issues are fueling the continued inflation issue meaning that retailers are increasingly concerned that Christmas this year will be disappointing for retailers as more Americans may forgo the holiday traditions as they are paying more for fuel, food, and rent.

To fight inflation, the Federal Reserve has sharply raised interest rates, but many investors are concerned that they will go too far, and the increasing cost of borrowing could send the economy into recession.

The economy slowed during the first two quarters of the year, but Treasury Secretary Janet Yellen insists that the economy is not in recession.

It is too early to know what the growth numbers will be for the third quarter.

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