The US stock market had an additional day of sharp losses at the conclusion of a by now turbulent week.
The Dow (INDU) closed 0.9 %, or perhaps 245 points, reduced, 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 both indexes.
Worse nonetheless, it was the third round of weekly losses due to the S&P 500 and the Nasdaq Composite, making for their longest losing streak since August and October 2019, respectively.
The Dow was mostly horizontal on the week, nevertheless its modest 8 point drop still meant it had been its third down week inside a row, its lengthiest losing streak since October last year.
This kind of rough patch started with a sharp selloff pushed primarily by tech stocks, that had soared over the summer.
Investors have been pulled directly into different directions this week. On a single hand, the Federal Reserve committed to make interest rates reduced for longer, which is good for businesses wanting to borrow cash — and thus good for the stock sector.
Yet lower fees likewise suggest the central bank does not 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 another fiscal stimulus package and Covid-19 infections are actually rising once again around the globe.
On a more complex note, Friday also marked what is known as “quadruple witching,” which is the simultaneous expiration of inventory as well as index futures as well as options. It can spur volatility in the marketplace.