<p>The S&amp;P 500, a key <a href="http://dailywire.com/topic/wall-street">stock market</a> index, could drop another 15% to 20% before fully adjusting to a looming <a href="http://dailywire.com/topic/recession">recession</a>, according to a recent analysts’ note from investment bank Morgan Stanley.</p>
<p>“The bear market will not be over until recession arrives or the risk of one is extinguished,” the note predicted, per <a href="https://www.bloomberg.com/news/articles/2022-06-21/goldman-morgan-stanley-strategists-see-more-stock-market-losses?sref=3REHEaVI">Bloomberg</a>. Meanwhile, analysts from Goldman Sachs said stock traders were only pricing in a mild recession, “leaving them exposed to a further deterioration in expectations.”</p>
<p>The month of June has been marked by a <a href="https://www.dailywire.com/news/wall-street-sees-worst-carnage-since-2020">series of selloffs</a> amid dismal news on <a href="http://dailywire.com/topic/inflation">inflation</a>, as well as the <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">most aggressive move</a> to combat inflation from the <a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a> in nearly 30 years. While the Dow Jones Industrial Average and the Nasdaq Composite fell 4.8% during the week ending on June 17, the S&amp;P 500 was down 5.8% — marking its worst week since 2020, according to <a href="https://www.cnbc.com/2022/06/16/stock-market-news-futures-open-to-close.html">CNBC</a>.</p>
<p>More <a href="https://www.dailywire.com/news/bloodbath-on-wall-street-as-stock-market-plunges-into-bear-territory">selloffs occurred</a> during the week ending on June 10 — the day upon which the U.S. <a href="https://www.bls.gov/news.release/cpi.nr0.htm">Bureau of Labor Statistics</a> announced that the Consumer Price Index (CPI) rose 8.6% between May 2021 and May 2022, meaning that <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">inflation hit new four-decade record highs</a> and once again surpassed economists’ expectations. The Dow fell 2.5%, the Nasdaq fell about 3%, and the S&amp;P 500 fell 2.7% by the end of the week, according to <a href="https://www.nbcnews.com/business/markets/dow-falls-inflation-hits-40-year-high-consumer-sentiment-rcna32950">NBC News</a>.</p>
<p>On June 14, a <a href="https://www.dailywire.com/news/wall-streets-key-recession-indicator-just-went-off">yield curve inversion</a> — a phenomenon in the bond market that <a href="http://dailywire.com/topic/wall-street">Wall Street</a> watches as a key recession indicator — made the financial world uneasy. An inverted yield curve historically precedes recessions by six months to two years, as indicated by data from the <a href="https://fred.stlouisfed.org/series/T10Y2Y">Federal Reserve Bank of St. Louis</a>.</p>
<p>The Federal Reserve’s benchmark interest rate is now between 1.5% and 1.75%. Although rate hikes increase the cost of borrowing money and thereby slow economic activity, central bankers are <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">prepared to hike interest rates again</a> next month if high inflation persists.</p>
<p>While Democratic officials inside the Biden administration have insisted that a recession is not inevitable, former Democratic economic advisers lean in the opposite direction.</p>
<p>Larry Summers, who led the Treasury Department under the Clinton administration and served as National Economic Council director under the Obama administration, <a href="https://www.dailywire.com/news/top-obama-economic-advisor-whole-range-of-indicators-point-to-coming-recession">said over the weekend</a> that “a whole range of indicators” point to a contraction.</p>
<p>“The dominant probability would be by the end of next year we will be seeing a recession in the American economy,” Summers told NBC News host Chuck Todd, noting that his view is widely shared among forecasters.</p>
<p>However, current Treasury Secretary Janet Yellen acknowledged the economic woes while remaining <a href="https://www.dailywire.com/news/yellen-recession-not-inevitable-russias-war-to-blame-for-soaring-inflation">as optimistic as possible</a>.</p>
<p>“I expect the economy to slow,” Yellen told ABC News host George Stephanopolous. “It’s been growing at a very rapid rate, as the economy, as the labor market, has recovered. We have reached full employment. It’s natural now that we expect a transition to steady and stable growth, but I don’t think a recession is at all inevitable.”</p>
<p>President Joe Biden <a href="https://www.dailywire.com/news/watch-biden-pushes-back-at-reporter-over-recession-warnings-dont-make-things-up">shot down a question</a> from a reporter on Monday about recessionary risks during his walk on Rehoboth Beach in Delaware.</p>
<p>“The majority of them aren’t saying that,” Biden said. “Come on, don’t make things up, okay? Now you sound like a Republican politician. I’m joking. That was a joke, but all kidding aside, I don’t think it is.”</p>

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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.
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