‘Don’t freak out,’ analysts say

In the hopes of cooling inflation, the Federal Reserve is expected to raise interest rates by the end of the year to about 3 percent.

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National News

May 20, 2022 - 4:53 PM

Mounting fears of an economic downturn continue to weigh on stock market, spurring flight to safer havens. (Dreamstime/TNS)

With inflation surging, the war in Ukraine roiling global markets and the after-effects of the pandemic still clogging supply chains, everyday investors have been jittery. But some had their nerves pushed to the edge this week after the Dow Jones Industrial Average took a swoon on Wednesday of more than 1,100 points, followed by a loss of another 237 points on Thursday — a loss of 4% in two sessions.

“There are more and more clients being nervous,” said Anthony Valeri, director of investment management for California Bank & Trust, headquartered in San Diego. “And that happens when you have a severe selloff. It’s nerve-racking, it’s never fun.”

Tech giants have taken a pounding this year, with Netflix down almost 70 percent, Meta (Facebook’s parent company) off 44 percent and Amazon down 37 percent. But on Wednesday, weaker than expected first-quarter numbers by many retailers led to a rout.

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