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Capital Market Impact

Get updates on recent capital market data and trends, including possible expectations for future outcomes.

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Capital Market Impact

Investors seek a bottom as sentiment collapses

The S&P 500 has lost nearly 16% more than one-third through the year, representing the third-worst beginning to a year on record. In the previous four worst starts (1932, 1970, 1939, and 2020), the index saw a strong return from this point through year-end, averaging nearly 20%. A decline of 20% has occurred 14 times in the history of the S&P 500, with just two (1987 and 1966) not coincident with a recession, per Bloomberg. 

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Capital Market Impact

Rising rates and inflation continue to weigh on equities

Volatility remains intense, with the last six trading days showing the two worst sessions since June 2020 and the best move since May 2020. Below the surface of the decline shows more damage, with over half of NASDAQ down more than 50% from their 52-week high. Weak investor sentiment is now clearly impacting flows, with equity funds and ETFs losing assets in four-straight weeks.