S&P 500 closes the book on its steepest first-half slide since 1970

APD NEWS

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All three major U.S. stock indexes finished the month and the first half of 2022 on Thursday in negative territory, with the S&P 500 notching its steepest first-half percentage drop since 1970.

The Nasdaq had its largest-ever January-June percentage drop, while the Dow suffered its biggest first-half percentage plunge since 1962.

The year began with spiking cases of COVID-19 due to the Omicron variant, followed by Russia-Ukraine conflict, decades-high inflation and aggressive interest rate hikes from the Federal Reserve that stoked fears of a possible recession.

"All year it's been a tug-of-war between inflation and slowing growth, balancing tightening financial conditions to address inflation concerns but trying to avoid outright panic," said Paul Kim, chief executive officer at Simplify ETFs in New York.

"I think we are more than likely already in a recession and right now the only question is how harsh will the recession be?" Kim added.

Worries over inflation dampening consumer demand and threatening profit margins will have market participants listening closely to forward guidance.

The U.S. Commerce Department data showed spending rose just 0.2 percent in May, less than half the increase in April and part of a steady downward drift as consumers pull back amid surging prices.

(CGTN)