Learn the stock market › Stock market crashes in history › Lesson 6 of 7
The 2022 rate shock
Prices and rates
US inflation reached 9.1 percent in June 2022, the largest twelve-month rise since 1981. The Federal Reserve raised its rate from 0–0.25 percent in March to 4.25–4.5 percent in December.
The market
S&P 500, 2021–2024
S&P 500The high before the crash
| What | Date | S&P 500 |
|---|---|---|
| The high | Jan 3, 2022 | 4796.56 points |
| First close 20% below | Jun 13, 2022 | −20% |
| The low | Oct 12, 2022 | −25.4% |
| Back at the high | Jan 19, 2024 | two years |
It was a slow crash, with no single day near 1987. The largest one-day fall was −4.3%. Between Jun 16, 2022 and Aug 16, 2022 the index rose 17.4%, and then it fell on to the low.
Bonds fell too
The ten-year US Treasury yield rose from 1.6% to 3.9% between the S&P 500's high and low, and a broad US bond fund fell 14.4% with its payouts. When rates rise, old bonds lose value, so stocks and bonds fell together.
The companies
| Company | From the index's high to its low |
|---|---|
| Netflix | −63.0% |
| Meta | −62.3% |
| Nvidia | −61.8% |
| AMD | −61.5% |
| Exxon Mobil | +59.7% |
| Eli Lilly | +20.7% |
| Walmart | −8.2% |
The median of the 20 companies fell 32.4%, while Exxon Mobil went +59.7%. The table shows what happened, not why. How rates can reach a stock is in the lesson on interest rates. That rates lay behind the fall can't be shown from prices, even if it is the usual explanation. The Federal Reserve tied inflation to the pandemic, food and energy prices and the war in Ukraine.
Test yourself
What happened to bonds in 2022?
The index leaves out dividends. Closes through Nov 6, 2026.
Sources
- U.S. Bureau of Labor Statistics, Consumer Price Index, June 2022, read November 5, 2026.
- Federal Reserve, statements of March 16 and December 14, 2022, read November 5, 2026.