The US stock market had a further day of razor-sharp losses at the conclusion of a currently turbulent week.
The Dow (INDU) shut 0.9 %, or maybe 245 areas, reduced, on a second-straight working day of losses. The S&P 500 (The Nasdaq and spx) Composite (COMP) both completed down 1.1 %. It was the third 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 August and October 2019, respectively.
The Dow was mostly horizontal on the week, but its modest 8 point drop still meant it was its third down week in a row, its longest losing streak since October last year.
This kind of rough plot began with a sharp selloff pushed mostly by tech stocks, that had soared over the summer.
Investors have been pulled into different directions this week. On one hand, the Federal Reserve committed to make interest rates reduced for longer, which is great for companies desiring to borrow cash — and consequently helpful for the stock market.
But lower fees in addition mean the central bank doesn’t expect a swift rebound back to normal, and that puts a damper on residual hopes for a V shaped recovery.
Meanwhile, Congress still has not passed another fiscal stimulus package and Covid-19 infections are rising all over again throughout the world.
On a much more complex mention, Friday also marked what is referred to as “quadruple witching,” which will be the simultaneous expiration of stock and index futures as well as options. It can spur volatility of the market.
