Which 2022 market decline followed inflation, rising interest rates, and Russia’s invasion of Ukraine?

The 2022 stock market decline was the global market downturn driven by inflation, rising interest rates, and geopolitical shocks including Russia’s invasion of Ukraine.

Consumer prices rose sharply in many economies after the pandemic recovery, supply disruptions, and energy-market shocks. Central banks, led by the U.S. Federal Reserve, raised interest rates to restrain inflation. Higher discount rates reduced the present value of future earnings, placing particular pressure on growth and technology shares.

Russia’s full-scale invasion of Ukraine in February 2022 added uncertainty to energy, food, trade, and security markets. The collapse of several high-growth technology stocks contributed to the wider decline, while bonds also suffered unusually large losses.

The downturn differs from the COVID-19 crash because it developed amid monetary tightening rather than emergency rate cuts. It also differs from 2008, which centered on housing finance and banking-system stress.