The US stock market had another day of razor-sharp losses at the end of a currently turbulent week.
The Dow (INDU) closed 0.9 %, or 245 points, lower, on a second straight working day of losses. The S&P 500 (spx) and The Nasdaq Composite (COMP) each completed down 1.1 %. It was the third day of losses in a row for the two indexes.
Worse still, it was your third round of weekly losses due to the S&P 500 and the Nasdaq Composite, making with regard to their longest losing streak since October and August 2019, respectively.
The Dow was mainly level on the week, nevertheless its modest eight point drop still meant it had been its third down week in a row, its most time giving up streak since October last year.
This particular rough spot started with a sharp selloff pushed primarily by tech stocks, which had soared over the summer.
Investors have been pulled directly into different directions this week. In one hand, the Federal Reserve committed to keep interest rates lower for longer, that is good for businesses desiring to borrow cash — and therefore beneficial to the stock industry.
However 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 restoration.
Meanwhile, Congress still hasn’t passed one more fiscal stimulus package and Covid 19 infections are actually rising once again across the globe.
On a more complex mention, Friday also marked what is referred to as “quadruple witching,” which will be the simultaneous expiration of inventory and index futures and options. It is able to spur volatility in the market.