MCC Construction Zone Economic Outlook
David Gibbs, CPA, CCIFP, CRE, MBA
T
he media issues new information on the state of the U.S. and global economies daily. Depending on the source, we are either heading towards a recession or not. My intention with this article is to present information from various sources about the state of the economy since it is a fluid situation that can change quickly.
Moving into a Bear Market Stocks tumbled lower on June 13 to open the week. The S&P 500 and NASDAQ Composite finished down last week for the ninth week in the previous ten. Notably, after hitting an intraday "bear" market decline (as measured by a 20% or more drop from a recent high) on May 20, the S&P 500 finally succumbed to weeks of selling pressure, closing below the bear market threshold for the first time since the depths of the pandemic. The Index currently sits at its lowest level since February 2021 and is down 22% from its record January high. By the market close, the NASDAQ and Russell 2000 Index were off 30% or more from their highs, and the 10-year U.S. Treasury yield finished at 3.39%, its highest level since 2011. (Ameriprise Global Asset Allocation Committee. After the Close. Anthony M. Saglimbene. June 13, 2022) Interest Rates “The Federal Reserve raised interest rates by three-quarters of a percentage point on June 15, its biggest move since 1994, as the central bank ramps up its efforts to tackle the fastest inflation in four decades. The big rate increase, which markets had expected, has underlined that Fed officials are 3 | Page
McCarthy.CPA
