The US stock market had a further day of sharp losses at the conclusion of a by now turbulent week.
The Dow (INDU) shut 0.9 %, or perhaps 245 areas, lower, on a second straight day of losses. The S&P 500 (spx) and The Nasdaq Composite (COMP) each completed down 1.1 %. It was the third working day of losses in a row for both indexes.
Even worse nonetheless, it was the 3rd 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 mostly level on the week, however its modest 8 point drop nonetheless meant it was its third down week in a row, its longest giving up streak since October last year.
This rough spot started with a sharp selloff driven mostly by tech stocks, which had soared over the summer.
Investors have been pulled directly into different directions this week. On a single hand, the Federal Reserve dedicated to make interest rates reduced for longer, that is good for companies desiring to borrow money — and therefore good for the inventory market.
Yet lower rates likewise suggest the central bank does not expect a swift rebound again to normal, which places a damper on residual hopes for a V-shaped recovery.
Meanwhile, Congress still hasn’t passed another fiscal stimulus package as well as Covid-19 infections are actually rising all over again around the world.
On a far more technical note, Friday also marked what is known as “quadruple witching,” which will be the simultaneous expiration of stock and index futures and options. It is able to spur volatility of the market place.