As interest rates soar, Wall Street braces for an inevitable recession

It’s a double-dip bear market and the selling might not be done until all the post-pandemic gains are wiped out.

The US stock market fell to its lowest level this year last Friday (Sep 23) as central banks around the world ganged up on inflation with a vengeance.

The Dow Jones Industrial Average was close to the flat line for the year in late August after a summer rally based on the hope that the inflation dragon was slain. Recent data showed, however, that this stubborn dragon was just playing dead. That inspired the most hawkish warning yet last Wednesday from US Federal Reserve Chairman Jerome Powell.