The S&P 500 is heading for its worst monthly decline since March 2020. With interest rates and inflation rising this also raise concerns for consumer sentiment. A severe Covid lockdown in China and the invasion of Ukraine are adding to disruptions in the flow of goods across borders, contributing to rising food and energy prices, and threatening corporate profits. The index, down 5.4 percent for the month through Thursday, dropped another 2 percent by Friday afternoon. April was the third month of losses this year and stocks are now down more than 10 percent in 2022. Analysts say that Wall Street’s pessimism isn’t likely to end until the major concerns are resolved, and when that will happen seems impossible to know. What matters the most is the impact on consumers. Economists expect demand to slow as people face high prices and increased borrowing costs at the same time. "“The consumer is the main driver of the U.S. economy,” said Kathy Bostjancic, chief U.S. financial economist at Oxford Economics. “So how the consumer goes, so goes the economy.” Ms. Bostjancic said that as the Fed continues to raise rates this year and into next year, “we see more vulnerability for the consumer and risks of a consumer pullback rise.”:
Hopefully these troubles from wall street don't end up on main street, as our purchasing power decreases with inflation rising it will be interesting to see how the stock market reacts in the future.
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