Why are stocks falling? Stocks are falling because the Fed has put forward a string of aggressive interest rate hikes in recent months. The policy approach aims to slash price increases by slowing the economy and choking off demand. But the move risks tipping the U.S. into a recession and putting millions out of work.
Challenges such as Fed money tightening and higher inflation have kept the stock market in a volatile state for most of 2022. Month-to-month changes in stock market performance have been attention-grabbing.