Bidenomics: Stocks Fall Into Bear Market Amid Recession Fears

Asthe U.S. economy is just one more negative quarter of GDP growth away from falling into a recession, the S&P 500 index fell back into bear market territory today.

According to CNBC:

Stocks tumbled Monday, pushing the S&P 500 back into bear market territory, as the major averages came off their worst week since January.

The Dow Jones Industrial Average dropped 640 points, or 2%, the S&P 500 fell 2.6% and the Nasdaq Composite tumbled 3.2%.

The S&P 500 hit a new intraday low for the year and was off nearly 21% from its record, back in bear market territory after trading there briefly on an intraday basis about three weeks ago. The benchmark now sits more than 20% from its January record close. If it finishes there on Monday, it will confirm a bear market to many on Wall Street.

The tech-heavy Nasdaq has lost the most of the major indices from their peak, having fallen just over 30% from its peak in November (as of writing).

Consumer sentiment has fallen this month to its lowest point on record, and analysts see increasing recession risk.

In CNBC’s CFO Council Survey, 100% of CFOs sampled say they expect a recession by next year, and 40% of them site inflation (which is at 40 year highs) as the biggest risk to their business.

Treasury Secretary Janet Yellen, who previously downplayed the risk of inflation as transitory, recently admitted that she was wrong about that and high inflation will persist – but did also say that the U.S. is likely to avoid a recession…. meaning one is probably inevitable.

Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros

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