The stock market casualty of the Biden economy.
Stocks further cratered yesterday, with the Dow Jones losing over 1,000 points, and the NASDAQ dropping 5%, the worst single-day drop since the beginning of the pandemic in 2020 for both indexes. The S&P 500 suffered its second-worst day of the year.
That came after the markets had already set a new record for their worst start for a year since 1939 only days prior. As MarketWatch reported on May 1st:
Marked by stomach-churning volatility and bruising losses in once-popular technology trades, the S&P 500 booked its worst start to a year, through the first four months of 2022, in over 80 years, with the steepest decline in April, down 4.9%, since at least 2002 contributing to the unsettling, bearish tone.
As of writing, the S&P 500 is down 13.5% year-to-date. The last time the markets been been off to a worst start four months into the year was 1939, when stocks were down 17.3%. The only other time stocks opened worst than that since the dawn of the 20th century was in 1932, when they were down 28.2% the first four months of the year.
While stocks are down across the board, there’s been a more brutal unwinding of stocks that benefitted heavily from lockdowns and other pandemic era policies, such as Amazon, Netflix, and Facebook, all of which are suffering their greatest declines in a decade. Countless other miscellaneous “stay-at- home” stocks have seen similarly abysmal returns.
Amazon, Facebook, and Netflix are in their deepest drawdown of the last 10 years pic.twitter.com/obzxVmFHmh
— Michael Batnick (@michaelbatnick) May 5, 2022
This comes as a possible recession looms, with the economy having already contracted 1.4% the first quarter of the year.
Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros
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