US stock market loses its recent winning streak when data shows a "worrisome deterioration" in the economy

The stock market declined on 22 July 2022 as a consequence of fresh data suggesting that U.S. industrial activity has stagnated and that the recent recovery in the services sector has reversed due to high prices and ongoing interest rate hikes.

The Dow Jones Industrial Average dropped 138 points, or 0.4 percent, to close at 31,899, while the S&P 500 and tech-heavy Nasdaq both experienced declines of 0.9 percent, 1.9 percent, and 2%, respectively.

Despite predictions for a small rise, equities began to slide after S&P Global announced that business activity had decreased "significantly" in July, with its closely watched Flash U.S. PMI Index reporting the biggest decline in output since May 2020 amid the pandemic recession.

Chris Williamson, chief business economist at S&P Global, said in a statement that the unexpected decline indicates a "worrying deterioration" in the economy as pent-up demand that fueled growth during the pandemic is supplanted by inflation, higher interest rates, and "growing gloom" about the outlook.

Companies are starting to reevaluate their production and personnel demands, which is resulting in slower employment growth, Williamson adds, as business forecasts of future growth have fallen to the lowest level since the early stages of the pandemic.

S&P Global wasn't the only company to express new worries on 22 July 2022; Bank of America economist Michael Gapen said that the quarter's gross domestic product likely fell by 1.5% due to a sharper-than-anticipated downturn in the housing market and a strong rise in business inventories.

The bank has predicted that the U.S. would enter a recession later this year, according to Gapen, and that inflation, which last month registered at 9.1 percent, will likely take at least another two years to decrease in line with the Fed's goal of 2%.

S&P Global's survey information, which was gathered from about 800 businesses and excluded the pandemic lockdown months, revealed output declining at a rate not seen since the global financial crisis in 2009.

Check Best Upcoming IPOs 2022

Best Upcoming IPO in July 2022: Simply monitor the Best Upcoming IPOs in July 2022 to keep an eye on the major market activity and company initiatives