Market Minute July 2022

The S&P 500 Index just experienced its worst first six months of the year since 1970, falling 20%. The twin threats of inflation and higher interest rates have overwhelmed the market despite a low unemployment rate, cash-rich consumer balance sheets, and a significant return of demand for consumer services. While sell side analysts have not yet reduced the nearly 10% earnings growth estimates expected this year, market declines clearly indicate investors expect otherwise. Investors started the year anticipating a recession was a modest possibility and with June’s decline of 8% in the S&P 500 Index, it’s obvious they have moved to a recession being probable sometime in the next year.

Click here to continue reading.

Posted on Thursday, July 7, 2022 @ 9:00 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.