Headline RoundupSeptember 23rd, 2022

Stocks Fall Sharply as Investors Readjust Economic Expectations

AllSides Summary

The Dow Jones Industrial Average temporarily fell over 800 points on Friday, entering bear market territory and reaching a new yearly low. Why is this happening?

Analysts across the media pointed to a range of factors influencing investors’ decisions, including persistent inflation in certain sectors, global interest rate hikes, the ongoing war in Ukraine and recession fears. Investors may have also been impacted when Goldman Sachs strategists cut their 2022 expectations for the S&P 500 by 16% Thursday evening. The S&P 500 and the Nasdaq Composite each fell over 2% Friday morning. 

International markets also took a hit on Friday; Europe’s Stoxx 600 index — which includes major European brands like AstraZeneca, Nestlé and Volkswagen — fell into bear market territory. Additionally, Australia’s S&P/ASX 200 index fell 1.87%, South Korea’s KOSPI fell 1.81%, and China’s Shanghai Composite fell 0.66%. 

Coverage was widespread across the spectrum, particularly in business-focused outlets. Coverage generally agreed that investor anxiety over recent economic shifts was the cause, with varying degrees of blame placed on the Federal Reserve’s anti-inflation interest rate hikes.

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