US stocks lose ground as recession fears grow

US stocks lose ground as recession fears grow

On Wednesday the Dow Jones Industrial Average and the S&P 500 saw sharp declines. Analysts have blamed investor jitters on inflation. “You’ve got investors pulling back from the market in the expectation that we’re going to have a recession,” David Donabedian, chief investment officer of CIBC Private Wealth Management, told Bloomberg News. Former Chairman of the Federal Reserve Ben Bernanke predicts continued inflationary pressure over the next two years leading to lower job growth and “stagflation,” or inflation combined with economic stagnation. (Source: Bloomberg, The New York Times, The Wall Street Journal)