This week, the prospect of a recession got real. Scary real.
Nearly six months into the stock market’s tumultuous ride, investors woke up Monday to see the claws of the bear now too late to duck: 40-year-high inflation for six months and the prospect of a quick spike in interest rates to tame it.
The S&P 500 fell into a bear market, defined as a 20% decline from its peak, and fell further Tuesday. Meanwhile, the 30-year fixed mortgage crossed the 6% threshold for the first time since 2008, sending mortgage applications in May to a 22-year low.