Stocks end lower after a turbulent week

The US stock niche had an additional day of razor-sharp losses at the tail end of a by now turbulent week.

The Dow (INDU) closed 0.9 %, or perhaps 245 areas, decreased, on a second-straight day of losses. The S&P 500 (spx) and The Nasdaq Composite (COMP) both completed down 1.1 %. It was the third day of losses in a row for each of those indexes.

Worse still, it was your third round of weekly losses for the S&P 500 and also the Nasdaq Composite, making for their longest losing streak since October and August 2019, respectively.

The Dow was generally horizontal on the week, nevertheless its modest 8 point drop nonetheless meant it was its third down week inside a row, its longest losing streak since October previous year.

This kind of rough patch started with a sharp selloff driven largely by tech stocks, which had soared over the summer.

Investors have been pulled into different directions this week. On a single hand, the Federal Reserve dedicated to make interest rates lower for longer, which is wonderful for businesses wanting to borrow cash — and therefore helpful for the stock industry.

Still lower fees in addition suggest the central bank doesn’t expect a swift rebound again to normal, and that puts a damper on residual hopes for a V-shaped restoration.

Meanwhile, Congress still hasn’t passed one more fiscal stimulus package and Covid-19 infections are rising again across the globe.

On a far more technical note, Friday also marked what’s known as “quadruple witching,” which is the simultaneous expiration of inventory as well as index futures and options. It can spur volatility of the marketplace.

Related Post