Stocks
edged lower in morning trading on Wall Street Thursday, adding to a slump for major indexes as
persistently high inflation continues to put pressure on the economy.

The S&P 500, the benchmark for
many index funds, is coming off its most significant drop in around two years.
It fell another 0.80% to 3,892.22 and is down nearly 19% from the record bear
market. That’s slightly short of the 20% mark that defines the bear market. The
last bear market happened just two years ago, following the outset of the virus
pandemic.

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The Dow Jones Industrial Average
fell 356.71 points or 1.13% to 31,133.36 as of 10:52 a.m. Eastern Time Zone.
The Nasdaq rose 23.63 points or 0.21% to 11,441.78.

Rising interest rate, soaring
inflation, the Russia-Ukraine war and a slowdown in China’s economy have caused
investors to rethink the prices they’re willing to pay for a wide range of
stocks, from high-flying tech companies to traditional automakers. Investors
have been concerned that the increasing inflation that’s affecting people’s
ability to buy groceries and fill their vehicles up is also harming company
profits.

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Target lost another 3.6% a day
after losing nearly a quarter of its value on an unexpected weak earnings report.

Wall Street is also concerned
about the Federal Reserve’s plan to curb the highest inflation in four decades. Central banks have been changing policies to help fight inflation, The Federal Reserve is gradually pushing its benchmark short-term interest rates off its record low near zero, where it spent most of the pandemic. The Fed is hiking interest rates aggressively and investors are worried that
the central bank could lead to a recession if it increases rates too high or
too quickly.