The S&P 500 fell nearly 3.6 percent on Friday, while the Dow fell nearly 940 points, or 2.8 percent.
The most closely watched inflation reading released on Friday – the Basic Personal Consumption Expenditure Index – rose 5.2 percent from a year earlier, adding to the economic woes.
Markets closed at record lows for the month. The Nasdaq fell nearly 12 percent this month, the S&P 500 fell more than 7 percent, and the Dow fell nearly 4 percent.
The ever-increasing number of headwinds is leaving investors uncertain about what will happen next. Revenue this season has been mild, and US GDP fell 1.4%, well below analysts’ estimates of a 1% increase. The Federal Reserve has taken a modest stance, signaling that it will accelerate interest rate hikes next week.
Globally, the Russia-Ukraine dispute has pushed up commodity prices and made companies uncertain about their second-quarter outlook. China has seen deteriorating growth and continues to shake the global supply chain with its zero-quad policy shutdown, and the trend of de-globalization is hurting multinationals in S&P.
The Nasdaq is now in the bear market area, about 23% below its height. The S&P 500 is more than 13% lower than its height and the Dow is 10% lower than its record.
Bank of America analysts on Friday cut their S&P 500 target by 100 points to 4,500 by the end of the year. He said that the average drop from peak to fall in the S&P 500 during the recession is about 32%, which means that the current 10% year-on-year decline is seen as a “one-third chance of a recession”. can go. “
If the possibility of a recession increases, the bank said, the sharp decline could continue.
Investors will take a closer look at next week’s Fed policy meeting, the April jobs report and corporate earnings from Starbucks, Uber, Lyft and Pfizer.