The US stock niche had another day of sharp losses at the tail end of a currently turbulent week.
The Dow (INDU) closed 0.9 %, or perhaps 245 points, lower, on a second-straight day of losses. The S&P 500 (The Nasdaq and spx) Composite (COMP) each completed down 1.1 %. It was the third day of losses of 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 level on the week, nevertheless its modest eight point drop still meant it was its third down week in a row, its longest giving up streak since October previous year.
This rough patch started with a sharp selloff pushed primarily by tech stocks, that had soared with the summer.
Investors have been pulled directly into different directions this week. On a single hand, the Federal Reserve dedicated to keep interest rates lower for longer, that is wonderful for businesses wanting to borrow cash — and thus good for any stock industry.
But lower rates also suggest the central bank does not expect a swift rebound again to normal, which puts a damper on residual hopes for a V-shaped recovery.
Meanwhile, Congress still hasn’t passed one more fiscal stimulus package and Covid-19 infections are rising once again throughout the world.
On a much more complex mention, Friday also marked what is known as “quadruple witching,” which will be the simultaneous expiration of stock and index futures as well as options. It is able to spur volatility in the market.