Stocks end lower right after a turbulent week
The US stock niche had a further day of sharp losses at the conclusion of an already turbulent week.
The Dow (INDU) closed 0.9 %, or maybe 245 areas, reduced, on a second straight working 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 in a row for each of those indexes.
Worse still, it was the third round of weekly losses because of the S&P 500 as well as the Nasdaq Composite, making for their longest losing streak since August and October 2019, respectively.
The Dow was mainly horizontal on the week, nevertheless its modest eight point drop still meant it had been its third down week inside a row, its most time losing streak since October last year.
This rough spot started with a sharp selloff driven mostly by tech stocks, that had soared over the summer.
Investors have been pulled into different directions this week. On a single hand, the Federal Reserve dedicated to keep interest rates lower for longer, that’s great for companies wanting to borrow cash — and consequently good to the stock sector.
Still 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 recovery.
Meanwhile, Congress still hasn’t passed one more fiscal stimulus package and Covid-19 infections are rising again around the world.
On a far more complex note, Friday also marked what’s known as “quadruple witching,” which is the simultaneous expiration of stock as well as index futures and options. It is able to spur volatility in the market.