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15 Worst Performing Dow Stocks YTD

Hamna Asim
18 min read

In This Article:

In this article, we discuss 15 worst performing Dow stocks year-to-date. If you want to skip our detailed discussion on stock market performance overall, head directly to 5 Worst Performing Dow Stocks YTD.

In a July report by J.P. Morgan, it was stated that global economic growth is expected to slow down in the latter part of 2023, while inflation appears to be easing. However, it's worth noting that global core inflation is projected to remain elevated, staying above 3% until 2024. This ongoing high inflation will continue to exert pressure on central banks, potentially leading to further tightening measures. Bruce Kasman, Chief Global Economist at J.P. Morgan, said:

“We do not think inflation is going to come back down to central bank comfort zones by themselves. Yes, there’s a decline going on. But no, we do not think you’re going to get inflation back below 3% in the U.S. or the euro area this year in an environment where supply has been damaged in a more lasting way and inflation psychology has shifted.”

In the first half of 2023, global economic growth gained momentum, reaching a rate of 2.8%. So far, efforts to tighten monetary policies have balanced the diminishing impact of supply disruptions caused by the COVID-19 pandemic and Russia's invasion of Ukraine. However, starting in 2022, global policy rates have increased by nearly 400 basis points, affecting spending sensitive to interest rates and limiting industrial production. Despite the current growth momentum, it is believed that the global economy's resilience is decreasing. Consequently, it is expected that developed markets may undergo another round of tightening measures before the end of 2023 to control inflation. However, such actions may have adverse effects on the private sector's well-being. Consequently, there is a possibility of a synchronized global economic recession occurring, potentially before the end of 2024. J.P. Morgan Research anticipates that the United States may experience a mild recession toward the end of 2023. This is attributed to the Federal Reserve's conservative monetary policy, which is leading to stricter credit availability and a gradual decline in economic growth. The Western European economy faced challenges during the winter due to high energy prices. Although the first quarter of 2023 showed some improvement, overall economic growth remained relatively stagnant.

In the first six months of 2023, there was a noticeable variance in stock performance, with differences observed in size, sectors, and investment styles. Surprisingly, this occurred amidst an unusual period of low volatility. Looking ahead, without any proactive measures from the Federal Reserve, experts expect a more difficult economic environment for stocks in the latter part of 2023. A similar less optimistic outlook is observed for equity markets in other regions across the world. Dubravko Lakos-Bujas, Global Head of Equity Macro Strategy at J.P. Morgan, stated:

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