Recession Worries Loom As Wall Street Falls Deeper Into Bear Market

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Recession Worries Loom As Wall Street Falls Deeper Into Bear Market
Wall Street remains on shaky ground as indexes continue to fall into a bear market amid rising inflation.

There's a dour outlook for the national and global economy, as all three major indexes on Wall Street keep falling deeper into a bear market.

There's rising inflation, along with global currencies crumpling against the dollar. 

Now, some analysts worry for those headed into retirement. Earlier this year, Quicken found almost half of people who planned to retire in 2022 were reconsidering that plan, most citing rising inflation.

The stock market dip isn't helping 401k stagnation or atrophy. Now rising interest rates are tempering consumer spending.

"That's what, by the way, the Federal Reserve is hoping you'll do is, instead of going out and buying something new, going on a trip, using your credit card, that you'll pay off that debt," said Michael Hicks, director of Ball State University's Center for Business and Economic Research. "That will slow the economy we hope, just a little bit."

It's the Fed's attempt to cool inflation, but it means a tighter time for people like Wisconsin resident Cassandra Pearson.

"I wouldn't be able to afford a lot of things right now, and it's already high," Pearson said. "Its going to make it more difficult."

The global outlook isn't great, either.

The British pound is devaluing as the United Kingdom's new prime minster pushes an economic plan involving nearly $50 billion-worth of unfunded tax cuts.

"The government says it's making tax cuts because it wants to put more money in people's pockets, but the problem is, by doing so, it's fanning inflation," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. "That means the Bank of England would have to put up interest rates on one hand so that borrowing costs are going to go up. And it means that the pound is so much weaker, so imports are becoming more expensive as well."

In China, the commerce ministry says the country's trade could get a blow from the weakening economy. 

China needs the influx of cash to help recover from its self-imposed COVID lockdowns. Leaders say they're still confident they will see demand later this year, but remain uncertain.

Back in the U.S., the numbers don't sit well with Patrick Casale. He's worried he'll never get to buy a house now.

"I'm 61 years old," Casale said. "I'm not going to be in a position where I could turn around and buy a house and pay $4,000, $5,000 a month for a mortgage."

It's a concern shared by millions, as analysts watch a fragile economy tightroping back from utter upheaval.