Image Source: CGTN
Concerns over the impact of measures to combat inflation on economic growth have caused US stocks to have their worst first half of a year since 1970.
The benchmark S&P 500 index plunged 20.6 percent during the past six months, and other significant US indexes also experienced significant declines.
Stocks have also experienced significant losses in the UK, continental Europe, and Asia.
It occurs at a time when central banks around the world are attempting to control rising living expenses, with prices of basic necessities like food and fuel rising.
As interest rates continue to climb, some experts predict that the US, which has the largest economy in the world, may enter a recession as soon as this year.
The Dow Jones Industrial Average, another significant US market indicator, experienced a decline of more than 15% in the first half of this year, the most since 1962.
The technology-focused Nasdaq Composite suffered a loss of about 30% at the same time, which was the greatest percentage decline in the first half of the year.
Significant stock market indices have declined this year outside of the US.
The Stoxx 600 index in Europe has collapsed by about 17%, the MSCI index of Asia-Pacific markets has fallen by more than 18%, and the UK’s FTSE 250 has fallen by more than 20%.
It happens at a time when several of the biggest central banks in the world are taking measures to slow the rise in living expenses, including hiking interest rates.
Earlier this week, the heads of three of the biggest central banks in the world issued a warning that the time of moderate inflation and cheap interest rates was coming to an end.
The leaders of the US Federal Reserve, European Central Bank, and Bank of England declared during a conference in Portugal that immediate action was needed to stop price increases from spiraling out of control.
They did issue a warning that attempts to contain an inflation shock brought on by the pandemic and war in Ukraine might seriously harm global economic growth.
The Fed increased interest rates last month, marking the largest increase in that time period, as it intensified its campaign to contain rising consumer costs.
Additionally, the Bank of England increased its benchmark interest rate from 1 percent to 1.25 percent, the highest level in 13 years.