The stock market fell closer to a bear market zone Friday, May 20, after major losses throughout the week.
The stock market tumble is a continuation from declines earlier this week, a week that saw record high gas prices continue to rise. The S&P 500 Index has dropped 20%, and if it closes there Friday afternoon, would qualify as a bear market.
“Since 1928, the S&P 500 has had 1 bear market every 4 years on average,” Charlie Bilello, founder of Compound Capital Advisors, wrote on Twitter. “With the S&P down 20% from its peak in January, this is now the 3rd bear market we’ve experienced in less than 4 years.”
Meanwhile, new polling shows the majority of Americans expect a recession as energy prices and inflation continue to soar. Quinnipiac University released new polling this week that showed most Americans are pessimistic about the nation’s economic future.
“The overwhelming majority of Americans (85 percent) think it is either very likely (45 percent) or somewhat likely (40 percent) that there will be an economic recession in the next year, while 12 percent think it is either not so likely (8 percent) or not likely at all (4 percent),” the poll said.
Overall, Americans did not think the economy was doing well before the stock market declines this week.
“Roughly 1 in 5 Americans (19 percent) say the state of the nation’s economy these days is either excellent (2 percent) or good (17 percent), while 4 in 5 Americans (80 percent) say it’s either not so good (34 percent) or poor (46 percent),” the poll reported. “This is Americans’ most negative description of the state of the nation’s economy in a Quinnipiac University poll since President Biden took office.”
This article originally appeared on The Center Square.