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The Year the Long Stock Market Rally Ended



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Neither the S&P 500 nor Tesla has since reached the heights they achieved on Jan. 3. The S&P 500 began the year’s final trading session on Friday almost 20 percent below where it was that day — and the year is set to be its worst annual performance since 2008. Cryptocurrency giants like FTX have fallen, and debt is no longer cheap.Inflation F.A.Q.Card 1 of 5What is inflation? Inflation is a loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.What causes inflation? It can be the result of rising consumer demand. But inflation can also rise and fall based on developments that have little to do with economic conditions, such as limited oil production and supply chain problems.Is inflation bad? It depends on the circumstances. Fast price increases spell trouble, but moderate price gains can lead to higher wages and job growth.Can inflation affect the stock market? Rapid inflation typically spells trouble for stocks. Financial assets in …

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