The S&P 500 index closed at its lowest level since January 2022 on Tuesday, as investors continued to sell off risky assets amid concerns about rising inflation and a potential recession.
The index fell 2.1% to close at 3,640.47, its lowest level since January 20. The Dow Jones Industrial Average fell 2.4% to close at 29,260.81, and the Nasdaq Composite fell 2.2% to close at 10,802.92.
The SELL OFF
The sell-off was broad-based, with all 11 sectors of the S&P 500 ending in the red. Technology stocks led the declines, with the Nasdaq Composite falling more than 2%.
The sell-off comes as investors continue to worry about the impact of rising inflation on corporate profits and the economy. Inflation is at a 40-year high, and the Federal Reserve is expected to raise interest rates several times this year in an effort to combat inflation.
Higher interest rates could slow economic growth, which could lead to a recession. Investors are concerned that a recession could lead to a decline in corporate profits, which could hurt stock prices.
The sell-off in stocks is also being driven by concerns about the war in Ukraine. The war has disrupted global supply chains and led to higher energy prices. These factors are also weighing on economic growth.
The sell-off in stocks is likely to continue until investors get more clarity on the path of inflation and the economy. Investors are also likely to remain cautious ahead of the Federal Reserve’s meeting next week.
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