The Dow Jones Industrial Average rose 0.7% on Wednesday, posting a second straight day’s gain. However, the S&P 500 ended flat, and the tech-heavy Nasdaq Composite slipped 1.2%, as the content giant Netflix Inc. (NFLX) declined some 35% in price in intraday trading on concerns over the company’s loss of subscribers.
In addition, the Russia-Ukraine war has created a worldwide crisis by fostering a massive rise in fuel and food prices. Global growth is forecasted to slow from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023. The Russia-Ukraine conflict and the probability of aggressive Federal Reserve interest rate increases have also driven significant market volatility. The CBOE Volatility Index (^VIX) is up approximately 16% year-to-date. Furthermore, the Bank of America Corp. (BAC) has stated that an inflation-induced recession might lead to another stock market correction.
