<p>The <a href="http://dailywire.com/topic/stock-market">Dow Jones</a> Industrial Average fell below 30,000 on Thursday for the first time since January 2021 amid dismal <a href="http://dailywire.com/topic/inflation">inflation</a> news and an aggressive interest rate hike from the <a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a>.</p>
<p>The Dow — a stock market index that tracks 30 large public companies trading on American exchanges — <a href="https://www.cnbc.com/2020/11/24/trump-brags-about-dow-30000-at-surprise-press-conference-leaves-after-a-minute.html">reached 30,000 for the first time</a> at the end of 2020 under former President Donald Trump. When President Joe Biden entered office on January 20, 2021, the Dow closed at slightly under 31,000 amid the rebound from COVID and the lockdown-induced recession.</p>
<p>After steadily increasing to nearly 37,000 through 2021, the Dow has since plummeted due to several economic headaches — including record inflation rates, persistent supply chain bottlenecks, and the Russian invasion of Ukraine. On Thursday afternoon, the index sank below 29,900 — reflecting a roughly 19% plummet from its peak in early 2022.</p>
<p>Most recently, the Consumer Price Index (CPI) increased <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">8.6%</a> year-over-year as of May, surpassing economists’ expectations. The Producer Price Index (PPI), which monitors inflation for wholesalers, increased <a href="https://www.dailywire.com/news/inflation-for-businesses-continues-at-double-digit-pace">10.8%</a> over the same period.</p>
<p>The Thursday selloff was induced by the Federal Reserve announcing that it would <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">hike interest rates</a> by 0.75% in the boldest monetary policy action since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">increased rates</a> by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March.</p>
<p>Rate hikes are meant to discourage further price level increases and signal to investors that central bankers are serious about battling inflation, but they carry the side effect of increasing borrowing costs for businesses and consumers — thereby dampening economic activity.</p>
<p>“Overall economic activity appears to have picked up after edging down in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low,” the Federal Open Market Committee, which handles the Federal Reserve’s policy interventions, said in a <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20220615a.htm">statement</a>. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.”</p>
<p>The yield curve — which tracks the relationship between bond maturity and expected interest rates — <a href="https://www.dailywire.com/news/wall-streets-key-recession-indicator-just-went-off">inverted</a> earlier this week in a sign that the economy is bound for a recession. Normally, a bond with a more distant expiration will have a better interest rate — but with an inverted yield curve, short-term interest rates are higher than long-term ones, reflecting a looming rate increase in the near future.</p>
<p>Overall, the United States <a href="https://www.dailywire.com/news/united-states-economy-shrinks-in-the-first-part-of-2022">economy shrank at an annualized 1.5% pace</a> during the first quarter of 2022, representing the most severe drop since output plummeted by 31.2% in the second quarter of 2020. The U.S. Bureau of Economic Analysis generally defines a recession as two consecutive quarters of negative growth.</p>
<p>Multiple polls, therefore, show business leaders predicting a contraction. In the National Association of Manufacturers’ most recent Manufacturers’ Outlook Survey, over 59% of executives in the sector said <a href="https://www.dailywire.com/news/majority-of-manufacturers-predict-recession-within-the-next-year">inflationary pressures</a> “make a recession more likely in the next 12 months.” More than 90% of respondents identified higher raw material costs as one of their “primary business challenges” in the second quarter.</p>
<p>Likewise, CNBC’s most recent CFO Council Survey indicates that financial executives reflected a <a href="https://www.dailywire.com/news/every-single-business-leader-surveyed-in-new-poll-thinks-a-recession-is-coming">pessimistic attitude</a> about economic futures. Most respondents — 68% — believe a recession will strike in the first half of 2023.</p>

<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script>
<script async src="https://www.instagram.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Dow Plummets Below 30,000, Down Almost 20% This Year Under Biden

CONTINUE READING

Bud Light Sales Continue To Plummet, May Soon Lose Status As Number-One Beer

‘Profoundly Christian’: Former Head Of Anglican Church Presses British Government To Endorse Assisted Suicide

Ben Shapiro Reacts To Debt Limit Deal, Hits Both Democrats And Republicans Over Spending Habits

‘The Chosen’ Defends Pride Flag Spotted On Set: ‘Let The Show Speak For Itself’

Chick-Fil-A Faces Backlash As Their Diversity Efforts Resurface, Other Woke Brands Take Beating

North Korea Sentenced Two-Year-Old To Life In Prison After Family Caught With Bible: State Department

News

Biden Administration

Economy

Inflation

Recession

Stock Market

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

Dow Plummets Below 30,000, Down Almost 20% This Year Under Biden