WhyItDropped

S&P 500 · September 13, 2022

The day inflation refused to come down

-4.32%

single-day change vs previous close

Part of a longer stretch

The 2022 inflation bear market

near the end of it · 2022-01-03 → 2022-10-12, -25.43% over the whole period

What happened that day?

  • On 13 September 2022 the S&P 500 fell 4.32%, its worst day since June 2020
  • The August inflation reading that morning came in above forecast
  • Oil had been falling since the summer, so inflation was expected to follow it down
  • Instead, inflation excluding fuel went up. Housing and services were the problem
  • Those do not come down as quickly as oil. It meant inflation would last
  • The market redid its arithmetic on the spot and raised its forecast for the next hike
  • In this stretch the index was 16.91% below its peak

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.