The US stock market had another day of sharp losses at the conclusion of a by now turbulent week.
The Dow (INDU) shut 0.9 %, or maybe 245 areas, lower, on a second-straight day of losses. The S&P 500 (The Nasdaq and spx) Composite (COMP) both finished down 1.1 %. It was the third working day of losses in a row for the two indexes.
Worse nonetheless, it was your third round of weekly losses due to the S&P 500 and also the Nasdaq Composite, making for his or her longest losing streak since October and August 2019, respectively.
The Dow was generally horizontal on the week, however its modest eight point drop nonetheless meant it had been its third down week in a row, its longest sacrificing streak since October previous year.
This rough spot began with a sharp selloff pushed mostly by tech stocks, that had soared over the summer.
Investors have been pulled into various directions this week. On one hand, the Federal Reserve committed to make interest rates lower for longer, that’s good for companies desiring to borrow money — and thus helpful to the stock industry.
But lower rates in addition suggest the central bank doesn’t expect a swift rebound again to normal, which puts a damper on residual hopes for a V shaped restoration.
Meanwhile, Congress still hasn’t passed another fiscal stimulus package as well as Covid 19 infections are rising again throughout the globe.
On a far more complex note, Friday also marked what’s referred to as “quadruple witching,” which is the simultaneous expiration of stock and index futures and options. It can spur volatility of the market.