Is this the worst January in stock market history? The tech- heavy Nasdaq is around 10% and the S&P 500 is down around 7%. This makes it the worst performing month is stock market history. The reasons for this are due to high inflation which is now being tackled with higher interest rates in order to incentivise people to save more and spend less. In addition, technology companies are seeing their future valuations drop because high inflation means that money becomes less valuable in the future. Federal reserve chairman (FED), Jerome Powell is also continually making negative comments regarding the market and this is driving them further down.

There has been a bounce today in the markets however. Is this a strong bounce or just another false positive? President Biden will hope that this is sorted out quickly because his ratings are already quite low. In addition the conintuous threat with Russia does not help any situation.

This is not financial advice.

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