The US stock market had a further day of sharp losses at the conclusion of a by now turbulent week.
The Dow (INDU) closed 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 finished down 1.1 %. It was the third working day of losses of a row for each of those indexes.
Worse nonetheless, it was the third round of weekly losses for the S&P 500 as well as the Nasdaq Composite, making for his or her longest losing streak since August and October 2019, respectively.
The Dow was mostly flat on the week, however its modest eight point drop still meant it was its third down week inside a row, its most time sacrificing streak since October previous year.
This rough plot began with a sharp selloff driven mostly by tech stocks, which had soared over the summer.
Investors have been pulled directly into various directions this week. On one hand, the Federal Reserve committed to make interest rates lower for longer, that’s great for businesses desiring to borrow money — and therefore beneficial for the inventory market.
Still lower rates also suggest the central bank doesn’t expect a swift rebound back to normal, and that places a damper on residual hopes for a V shaped recovery.
Meanwhile, Congress still hasn’t passed one more fiscal stimulus package as well as Covid-19 infections are rising all over again around the globe.
On a much more technical mention, Friday also marked what’s referred to as “quadruple witching,” which is the simultaneous expiration of inventory as well as index futures and options. It can spur volatility in the market.