From Equity Research
Equity markets closed out June and the first half of 2022 to the downside as investors chose to stay on the sidelines in the face of a challenging bear market. Amidst an environment of rising rates and surging inflation, equity valuations have moved relentlessly downward this year most recently fueled by rising fears of recession. With this uncertain backdrop, the VIX Index or “fear gauge” repeatedly broke above 30 during the month, and by month-end it had trended down towards the high-20’s range. For the full month, major equity indexes were all down sharply with the Dow Jones Industrial Average declining 6.7%, the S&P 500® index down 8.4%, and the smaller cap weighted Russell 2000® down 8.4% for the month.