WhyItDropped

S&P 500 · June 24, 2022

When expected inflation came down

+3.06%

single-day change vs previous close

Part of a longer stretch

The 2022 inflation bear market

midway through · 2022-01-03 → 2022-10-12, -25.43% over the whole period

What happened that day?

  • On 24 June 2022 the S&P 500 rose 3.06%
  • A consumer survey around this time showed lower expectations for future inflation
  • Expected inflation is what the Fed watches most, because if people believe prices will keep rising, they do
  • Lower expectations mean less reason to press as hard
  • Commodity prices — copper, oil — were falling at the same time, which is also a sign of a cooling economy
  • No single trigger can be pinned to this day
  • In this stretch the index was 22.77% 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.