The US stock market had an additional day of sharp losses at the end of an already turbulent week.
The Dow (INDU) shut 0.9 %, or perhaps 245 points, decreased, on a second-straight working day of losses. The S&P 500 (spx) and The Nasdaq Composite (COMP) both completed down 1.1 %. It was the third day of losses of a row for the two indexes.
Worse still, it was the third round of weekly losses for the S&P 500 and also the Nasdaq Composite, making with regard to their longest losing streak since August and October 2019, respectively.
The Dow was generally horizontal on the week, nevertheless its modest 8 point drop still meant it had been its third down week inside a row, its lengthiest giving up streak since October last year.
This rough patch began with a sharp selloff pushed largely by tech stocks, which had soared over the summer.
Investors have been pulled into different directions this week. In one hand, the Federal Reserve committed to make interest rates reduced for longer, that’s good for companies desiring to borrow money — and thus beneficial for any inventory sector.
Yet lower fees in addition mean the central bank does not expect a swift rebound back to normal, and that puts a damper on residual hopes for a V-shaped restoration.
Meanwhile, Congress still has not passed one more fiscal stimulus package and Covid-19 infections are actually rising once again around the world.
On a far more technical note, Friday also marked what’s known as “quadruple witching,” which is the simultaneous expiration of inventory and index futures and options. It is able to spur volatility of the market place.