The stock market took a steep nosedive Wednesday and the Dow Jones Industrial Average plummeted by nearly 1200 points. Americans across the country are watching their retirement savings, specifically, 401k plans, get wiped out.
"The Dow Jones Industrial Average headed for its biggest loss since 2020 on Wednesday after another major retailer warned of rising cost pressures, confirming investors' worst fears over rising inflation and rekindling the brutal 2022 sell-off," CNBC reports. "The Dow shed 1,164 points, or 3.6%, or the average's biggest decline since October 2020. The S&P 500 traded 4% lower, the biggest drop since June 2020. The Nasdaq Composite slipped 4.6%, the largest fall in the tech-heavy index since May 5. The selling was broad and intense on Wall Street with just 13 members of the S&P 500 in the green."
When asked about the situation, White House Press Secretary Karine Jean-Pierre said President Joe Biden and administration officials aren't paying attention to the losses.
Karine Jean-Pierre: The stock market is "not something we keep an eye on every day." pic.twitter.com/u2hwXffvlM— Townhall.com (@townhallcom) May 18, 2022
Meanwhile, warnings of a recession are growing increasingly louder as inflation continues to spiral out of control.
The U.S. economy and financial markets are in for an unprecedented decline, yet this time the #Fed won't be able to help. In fact, it will add to the pain. Either it will make the #recession and financial crisis worse or it will make #inflation worse. Most likely it will do both!— Peter Schiff (@PeterSchiff) May 18, 2022