FYT - The S&P 500 Enters Bear Market Territory As Fed Hikes Interest Rates
- Through the end of the trading week ending 17 June 2022, the S&P index was 23.4% below its 3 January 2022 record high peak.
- From our perspective, after the May 2022 inflation report came in higher than expected, investors sent the S&P 500 lower in a new Lévy flight event, the seventh of 2022, as investors scrambled to shift their attention back toward 2022-Q2 from 2022-Q3.
- After the Fed's 15 June 2022 three-quarter point rate hike, the CME Group's FedWatch Tool projects half-point rate hike for both July and September 2022 (2022-Q3), then another half-point rate hike in early November (2022-Q4).
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The S&P 500 Enters Bear Market Territory As Fed Hikes Interest Rates