The S&P 500 is now poised for its worst first half of the year since Richard Nixon’s presidency. About it writes Bloomberg.

With only seven trading days left until the end of June, the index has fallen 21% since the beginning of the year amid expectations that the “toxic mix” of high inflation and aggressive actions of the Federal Reserve will lead the U.S. economy into recession.

According to data compiled by Bloomberg, the last time the S&P 500 fell so much in the first six months was only in the 1970s.

According to Societe Generale (EPA:SOGN) SA strategist Manish Kabra, a 1970s-style inflation shock could cause the index to fall about 33% from current levels to 2525 amid stagnation and higher inflation.

A key takeaway from the 1970s is the risk that if investors start to believe inflation will stay high longer, stock markets will start to focus on real rather than nominal earnings-per-share rates, which are likely to be negative this year, SocGen said.

The S&P 500 moved into a bear market early last week and then rebounded sharply on Tuesday, but U.S. futures on Wednesday indicated the rebound may be short-lived. Traders are preparing for Fed Chairman Jerome Powell’s Senate speech today, where he is expected to reiterate his commitment to fighting price pressures.