2022, thus far, has been a rocky year for the stock market. The recent macroeconomic concerns have pushed the major U.S. indices significantly, with the Dow Jones Industrial Average plunging 5.3% in APril. Two weeks ago, Fed Chairman Jerome Powell warned of a potential interest rate hike of 50 basis points in May to combat surging inflation. Also, the resurgence of COVID-19 cases in China led to economic shutdowns because of strict lockdown measures and further added to the fears of economic slowdown.
Furthermore, the investors remain concerned about the geopolitical crisis linked to Russia's invasion of Ukraine. Last month, the weak corporate earnings of the big tech companies indicated the signs of decelerating growth and triggered a broad sell-off in tech stocks majorly. All these factors are compounding the fears of recession and, therefore, pushing the Dow Jones index lower.
