US stocks see worst first half of 2022 since 1970

58
1
US stocks see worst first half of 2022 since 1970

The US stocks have seen their worst first half of a year since 1970, as concerns grow over how to curb inflation will affect economic growth.

In the last six months, the benchmark S&P 500 index fell 20.6%, while other major US indexes fell sharply.

It comes as central banks around the world are trying to control living costs, with prices of essential goods like food and fuel jumping.

Some economists believe that the US, which is the world's biggest economy, will go into a recession as interest rates continue to rise.

The Dow Jones Industrial Average, the biggest US stock index, fell by more than 15% in the first half of the year, the biggest drop for the period since 1962.

The technology-focused Nasdaq Composite lost 30% of its value in the first half of the year, marking its largest percentage drop for the first half of a year.

The UK's FTSE 250 has dropped by more than 20%, while the European Stoxx 600 index has fallen by more than 17% and the MSCI index of Asia-Pacific markets has fallen by more than 18%.

It comes as many of the world's biggest central banks take measures to slow the rise in the cost of living, including raising interest rates.

The US Federal Reserve announced last month its biggest rate rise in nearly 30 years, as it ramped up its fight to control consumer prices.

The Bank of England raised its key interest rate to the highest level in 13 years, from 1% to 1.25%.