On Monday, May 9, the SPDR S&P 500 ETF Trust – or $SPY – closed at $398.17 with a yearly return of -4.73% (-$19.77) and a YTD return of -16.65% (-$79.54). This price drop has been a drastic descent from its highs of the year at the $477 range on January 3, 2022.
$SPY has historically had a return of 10.5% every year. However, the current charts show that $SPY is consistently slipping lower on every available time chart, excluding the 5-year where $SPY is still up with a return of 60%. The current fall in $SPY marks one of the most significant falls the fund has ever seen. Taking its spot behind the crash of 2020 when the index fell from $337.60 on February 14, 2020, to $228.80 on March 20, 2020 – a 32% fall – and $140.35 on May 30, 2008, to $86.62 on November 14, 2008 – a 38% fall.
The three major markets are down over 5% on the yearly as of May 9, 2022, with NASDAQ being the biggest loser at -15.48%. These falling prices are the result of market-wide changes. Notably, the inflation rate reached 8.5% as of March’s CPI data, making this the highest rise in inflation since December 1981 (BLS.gov). Following this 40-year high of inflation was a .5% interest rate hike by the Federal Reserve in an effort to combat it. CPI data is a lagging indicator, and the inflation rate may be higher or lower at this current time. Other factors include the Russia-Ukraine war, which added to the uncertainty of the market and increased stress on fuel supply.
*Info gathered from GoogleFinance charts*
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