Stocks end lower right after a turbulent week
The US stock industry had a further day of razor-sharp losses at the end of an already turbulent week.
The Dow (INDU) closed 0.9 %, or maybe 245 points, decreased, on a second-straight day of losses. The S&P 500 (spx) and The Nasdaq Composite (COMP) both finished down 1.1 %. It was the third day of losses in a row for each of those indexes.
Even worse still, it was the third round of weekly losses due to the S&P 500 as well as the Nasdaq Composite, making for their longest losing streak since August and October 2019, respectively.
The Dow was mostly level on the week, but its modest eight point drop still meant it had been its third down week inside a row, its longest losing streak since October last year.
This rough spot started with a sharp selloff pushed primarily by tech stocks, that had soared with the summer.
Investors have been pulled directly into various directions this week. On one hand, the Federal Reserve committed to keep interest rates lower for longer, which is good for companies wanting to borrow cash — and therefore beneficial to the inventory industry.
However lower rates likewise mean the central bank does not expect a swift rebound back to normal, and that places a damper on residual hopes for a V-shaped restoration.
Meanwhile, Congress still has not passed another fiscal stimulus package as well as Covid 19 infections are rising again around the globe.
On a much more technical note, Friday also marked what’s known as “quadruple witching,” which is the simultaneous expiration of stock and index futures as well as options. It is able to spur volatility of the market place.