Making Sense of the July Swoon

S&P says that while the recent equity downdraft may signal a correction within the current bull run, a bear market isn't likely to emerge

July was not kind to equity investors. In response to widening subprime worries and a continued weakening of new- and existing-home sales and prices, the Standard & Poor's 500-stock index fell 3.2% on the month, while the S&P MidCap 400 declined 4.4%, and the S&P SmallCap 600 slumped 5.1%. Eight of the 10 sectors in the S&P 500 were in the red, with Financials posting the largest decrease of 8%. Energy and Industrials were the only gainers on the month.

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