Friday’s sharp intraday drop to a low on the S&P 500 of 3,810 was a brush with a bear market. Recession fears cast shadow over business leaders and market participants. The textbook definition of a recession is a prolonged period of economic decline, beginning when the economy peaks and ending when it bottoms out, with macroeconomic signals such as weak consumption, increasing unemployment rate, decreasing industrial output, and greater risk of default.

The chart shows how the recession performed for the past 3 times in US.

• Fed minutes released Wednesday indicated that officials are prepared to move ahead with multiple 50 basis points interest rate increases. In addition, FOMC said policy may have to move past “neutral” and into “restrictive” territory. 

• The minutes indicate that members are hopeful they can bring down inflation, but also concerned about financial stability risks.

• Snap will miss its forecast for revenue and profit in 2Q22, CEO Evan Speigel warned on Monday. The company will also slow hiring through the end of the year as it looks to manage expenses

• His message sent a chill across the digital advertising industry. Snap lost an astounding 43.1% of its market cap on Tuesday. Beyond that, Pinterest plunged 23.6%, Meta dropped 7.6%, Google lost 5% and Twitter sank 5.6%.

• The deal would be one of the largest technology acquisitions of all time, behind Microsoft’s pending $69 billion deal to purchase Activision Blizzard and Dell’s $67 billion purchase of EMC in 2016.

• The deal would push Broadcom deeper into a software world. Under the deal, VMware shareholders will elect to receive either $142.50 in cash or 0.2520 Broadcom shares for each VMware share. Broadcom also will assume $8 billion of VMware’s debt.

• An SEC filing showed Musk committed $33.5 billion in equity, up from the prior $27.25 billion.

• Musk no longer planned to rely on a margin loan backed by shares of Tesla, which are down by about a third since Twitter accepted his bid in late April.

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