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May 30, 2022


WILD FIVE MONTHS LEAVES WALL STREET SPLIT ON WHEN SELLOFF ENDS

by Bloomberg News
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(Bloomberg) — With stocks rallying as May draws to a close, investors are
wondering if the worst of this year’s collapse is over.

No doubt, it’s been awful start to 2022 by almost any measure. The S&P 500’s 13%
drop so far this year is its biggest since 1970, fueled by recession fears as
the Federal Reserve embarks on its most aggressive tightening of monetary policy
since 2000 to fight inflation. Rising interest rates dented the allure of
technology and growth shares, with the Nasdaq 100’s 22% plunge ranking as its
largest ever.

The selloff interrupted a two-year bull run in stocks that began in the depths
of the Covid-19 pandemic. But less-hawkish remarks from Fed officials,
a resilient American consumer and upbeat corporate earnings have offered
investors a ray of hope. That sent the S&P 500 climbing 2.5%, snapping its
longest weekly losing streak since 2001.

While the historic rout in tech shares is easing somewhat, the Nasdaq 100’s dive
from its November peak briefly eclipsed its pandemic selloff in March 2020. Its
nearly 30% drop was its worst since the gauge tumbled more than 50% at the
height of the global financial crisis. After Friday’s rally, the index is 23%
below its Nov. 19 closing record.

Investors have been whiplashed at a pace that hasn’t been seen since 2008. The
S&P 500 has moved in a daily range of at least 1% in 89% of the trading sessions
in 2022, according to Strategas Securities.

One group bucking the trend has been the energy sector after oil prices, spurred
by the war in Ukraine. That has made energy the stock market’s hottest cohort by
far with a 58% gain this year.



So, is capitulation near? Analysts say there may be more head fakes before
stocks hit a final low. But cheaper valuations have started to lure buyers back.
Historically, the five previous worst starts to a year for the S&P 500 saw the
index higher for the remainder of the year each time, rising on average 19.1%
over the ensuing seven months, according to LPL Financial. One caveat, though:
Stock market trading and investing have changed drastically since the 1970s, let
alone the 1930s.



BIG TECH SWEPT INTO SELLOFF ERASING $1 TRILLION FROM NASDAQ 100

Traders are shunning technology stocks amid mounting risks from soaring Treasury
yields and hawkish commentary from the Federal Reserve.

Apr 11, 2022

In "News"

SHAKY STOCKS SEND S&P 500 TO THE BEAR MARKET BRINK AND BACK

More hair-raising volatility in the S&P 500 pushed the index within spitting
distance of a 20% drop, a decline that puts markets on covers of newspapers and
holds ominous meaning for the economy.

May 12, 2022

In "News"

WALL STREET STAGGERS WITH ‘VICIOUS’ $1.3 TRILLION STOCK SELLOFF

A day after celebrating the Federal Reserve’s signal that it wouldn’t be making
any jumbo-sized moves, traders woke up on Thursday deciding that the central
bank will struggle to fight high inflation amid the lingering threat of a
recession.

May 5, 2022

In "News"

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