June 13, 2022

NEW YORK (AP) — Wall Street is back in the claws of a bear market as worries about inflation and higher interest rates overwhelm investors.

The Federal Reserve has signaled it will aggressively raise interest rates to try to control inflation, which is the highest in decades. Throw in the war in Ukraine and a slowdown in China’s economy, and investors have been forced to reconsider what they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers. Big swings have become commonplace and Monday was no exception.

The last bear market happened just two years ago, but this is still a first for those investors that got their start trading on their phones during the pandemic. Thanks in large part to extraordinary actions by the Federal Reserve, stocks have for years seemed to go largely in only one direction: up. But the “buy the dip” rallying cry popular after every market slide has grown more fainter — a recent rebound in stock prices was wiped out by a furious bout of selling over the past four days.

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https://apnews.com/article/what-is-bear-market-74b248354eeda7403cd4b53cbffc4515