By CASEY HARPER
THE CENTER SQUARE
(The Center Square) – The stock market came back from a midday drop on Friday, the day ending with the S&P 500 Index 18.6% below the record high set in early January.
A bear market would have begun if the decline reached 20%.
The stock market tumble is a continuation from declines earlier this week, a week that saw record high gas prices continue to rise. Other contributing factors in the index most closely associated with workers 401(k) accounts are rising interest rates, inflation, the war in Ukraine and China’s economy.
“Since 1928, the S&P 500 has had 1 bear market every 4 years on average,” Charlie Bilello, founder of Compound Capital Advisors, wrote on Twitter. “With the S&P down 20% from its peak in January, this is now the 3rd bear market we’ve experienced in less than 4 years.”
New polling shows the majority of Americans expect a recession as energy prices and inflation continue to soar. Quinnipiac University released new polling this week that showed most Americans are pessimistic about the nation’s economic future.
“The overwhelming majority of Americans (85 percent) think it is either very likely (45 percent) or somewhat likely (40 percent) that there will be an economic recession in the next year, while 12 percent think it is either not so likely (8 percent) or not likely at all (4 percent),” the poll said.
Overall, Americans did not think the economy was doing well before the stock market declines this week.
“Roughly 1 in 5 Americans (19 percent) say the state of the nation’s economy these days is either excellent (2 percent) or good (17 percent), while 4 in 5 Americans (80 percent) say it’s either not so good (34 percent) or poor (46 percent),” the poll reported. “This is Americans’ most negative description of the state of the nation’s economy in a Quinnipiac University poll since President Biden took office.”