US stocks off to worst start in over 50 years

Stocks extended losses from Thursday's session, with the Dow down 15.3% so far this year – marking its worst first-half performance since 1962. The S&P 500 index ended the first half of 2022 lower by 20.6% for its worst start to a year since 1970. The Nasdaq’s 29.5% drop so far in 2022 marked its worst first half on record.

The steep first-half losses come as investors are grappling with the risks of an economic downturn and tighter monetary policy, as the US Federal Reserve responds to inflation with aggressive interest-rate hikes. The Fed hiked the key interest rate by 0.75 of a percentage point in June, marking the biggest rate increase since 1994.