- The S&P 500 index has declined 7.8% year-to-date in 2022
- The Consumer Confidence Index fell from 111.1 to 110.5 in February
- The S&P CoreLogic Case Shiller 20-City Composite Index rose 18.8% in 2021, the highest 12-month growth on record
Top Three Market Headlines
S&P 500 Index Tumbles Into a Correction: The S&P 500 index last week officially entered correction territory, falling more than 10% from its recent high in early January. This was the first time the index experienced a decline of this magnitude since the start of the pandemic. In doing so, the S&P joined other market indices, including the NASDAQ Composite and the Russell 2000, which had earlier registered corrections. On a year-to-date basis through last Friday, all major equity indices were showing losses for the year, reflecting investors' concerns about rising interest rates and persistently high inflation. In addition, the CBOE VIX index, a measure of market volatility, hit a two-year high last Thursday as investors reacted to the news of Russia's invasion of Ukraine.
Consumer Confidence Backtracks Again: The outlook of U.S. consumers waned for a second straight month in February, according to the latest Consumer Confidence Index report issued by the Conference Board, a private research group. The index fell from 111.1 in January to 110.5 in February, and remains well below its mid-2021 cycle high of 128.9. According to the survey, plans to purchase homes, automobiles, major appliances, and vacations over the next six months all fell in February. Unsurprisingly, consumers' concerns about inflation rose again in February, according to the survey.
Home Prices See Record Growth in 2021: Home prices across the nation continued to surge as 2021 drew to a close, as indicated by the 18.6% year-overyear increase for the S&P CoreLogic Case-Shiller 20-City Composite Index in December. For the full year, the Index jumped 18.8%, the highest annual increase in the history of the index, which began tracking the data in 1987. Low mortgage rates combined with historically low inventories of homes for sale contributed to the rapid increase in home prices throughout the year as buyers entered bidding wars in an effort to secure what homes were available on the market.