The Activism Vulnerability Report

The U.S. stock markets experienced considerable volatility as inflation remained a concern for investors. In July 2022, the U.S. Federal Reserve enacted its second consecutive 75 basis point interest rate increase, following a similar increase in the previous month. 

These factors, when combined with an inverted yield curve, early signs of a softening labour market and a second consecutive quarterly decline in GDP, have exacerbated investors’ concerns of a looming recession.

While the market has gained some ground from the lows of summer, as of September 1, 2022, the Dow Jones Industrial Average was down 12.9% year-to-date for 2022, the S&P 500 was lower by 16.8% and the Nasdaq Composite fell by 24.7%. Over the same period, the CBOE Volatility Index was up over 30.2%.

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FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.