The US stock market had another day of sharp losses at the end of a by now turbulent week.
The Dow (INDU) shut 0.9 %, or perhaps 245 points, decreased, 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 day of losses of a row for both indexes.
Even worse still, it was your 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 generally level on the week, but its modest eight point drop nonetheless meant it had been its third down week in a row, its longest losing streak since October previous year.
This particular rough plot started with a sharp selloff pushed mostly by tech stocks, which had soared with the summer.
Investors have been pulled directly into different directions this week. On a single hand, the Federal Reserve committed to make interest rates lower for longer, that’s great for businesses desiring to borrow cash — and therefore beneficial to the stock sector.
But lower rates in addition suggest the central bank does not expect a swift rebound back to normal, which places a damper on residual hopes for a V shaped restoration.
Meanwhile, Congress still hasn’t passed one more fiscal stimulus package as well as Covid 19 infections are actually rising all over again across the world.
On a much more complex mention, Friday also marked what is known as “quadruple witching,” which will be the simultaneous expiration of inventory and index futures as well as options. It is able to spur volatility in the market.