Daily Stock Market Reports

Keep a cool head during these stock market ups and downs

January 2022 was a rough month for investors. Despite a late, brief rally, the S&P 500 and Nasdaq Composite posted their worst months since the start of the pandemic with drops of nearly 10% and 9%, respectively.

Those losses can make it easy to overlook just how well the market had performed in the previous two years. Despite being the first year of the pandemic, 2020 saw the S&P gain 16%. And 2021 was even better, in part thanks to optimism over the new COVID-19 vaccines. 

Hunter Yarbrough

In fact, although many parts of the economy certainly suffered, the stock market was up an astonishing 47% over that two-year period.

But optimism has a shelf life. By late 2021, concerns over supply chain problems and runaway inflation left many investors feeling pessimistic. Add to that growing worries over higher interest rates and simmering geopolitical concerns (such as escalating tensions over Russia and Ukraine) and volatility took hold of the markets. 

Read More: Keep a cool head during these stock market ups and downs

You might also like