Technology stocks marked the worst of this week’s sales, adding to what was already a very volatile start to 2022.
Shares fell, ending the worst week of a pandemic outbreak that shook markets, with technology stocks taking the brunt of the sell-off amid volatile company profits and the prospect of higher US interest rates.
S&P 500 closes below its 200-day moving average, key technical level, for the first time since 2020 Inc. Bitcoin collapsed in a protracted cryptocurrency sellout, falling below $ 38,000 to its lowest level in more than five months.
The volatility that hit the markets this month showed no signs of weakening on Friday, with the S&P 500 falling for a fourth day, extending losses over the period to 5.7% for the worst, albeit shortened, week of March 2020. options is more than $ 3 trillion helped increase market turbulence.
“I think this is the longest short week in history, right?” Jay Peloski, founder and president of TPW Investment Management, told Bloomberg TV. “It was only a four-day week, and it feels like two weeks have passed into one.”
The US company’s reporting season has so far been uneven, highlighting the risk that it may fail to revive animal spirits on the stock market. While disappointing prospects for Netflix subscribers led to a drop in its shares, Peloton Interactive Inc. suggested he was ready to recover after the pet of the home trade was affected by a report suspending production.
Markets are also preparing to raise interest rates from the Federal Reserve. Economists polled by Bloomberg expect politicians to raise interest rates in March for the first time in more than three years and to narrow their balance sheets soon after. Geopolitical tensions also heighten anxiety. The report that Washington is allowing some Baltic states to send US-made weapons to Ukraine has raised fears of opposition to Russia.
“There are many risks to the global economy, including geopolitical developments,” wrote Ethan Harris, head of global economics at Bank of America Global Research. “However, in our opinion, the biggest risk in the short term is right before us: that the Fed is seriously lagging behind the curve and must take seriously the fight against inflation.
Asylum demand pushed 10-year government bond yields down more than 10 basis points in three days to 1.76%, leaving interest rates lower during the week, the first drop in five weeks.
Stock market sells have volatility indices that cause more turbulence in the short term than in the future. The setting known as inverted VIX. Such an inverted curve has occurred four other times in the last year, and they all coincided with the bottom of the market.
“We will all breathe a sigh of relief when this session is finally over, and then we can end this week because it has been painful everywhere,” said Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors in Torrance, California.
Some of the main market movements:
- The S&P 500 fell 1.9% at 4 p.m. in New York
- Nasdaq 100 fell 2.7%
- Dow Jones industrial average falls 1.3%
- The MSCI World Index fell 1.8%
- The Bloomberg Dollar spot index fell 0.1%
- The euro rose 0.3% to $ 1.1345
- The British pound fell 0.3% to $ 1.3557
- The Japanese yen rose 0.4% to 113.68 per dollar
- 10-year bond yields down five basis points to 1.76%
- Germany’s 10-year yield fell four basis points to -0.06%
- Britain’s 10-year yield fell five basis points to 1.17%
- West Texas Intermediate crude fell 0.7 percent to $ 84.91 a barrel
- Gold futures fell 0.7% to $ 1,832.70 an ounce