The US stock niche had a further day of razor-sharp losses at the end of an already turbulent week.
The Dow (INDU) shut 0.9 %, or maybe 245 points, decreased, 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 the two indexes.
Worse still, it was the third round of weekly losses for the S&P 500 and the Nasdaq Composite, making for their longest losing streak since August and October 2019, respectively.
The Dow was mainly flat on the week, however its modest 8 point drop still meant it was its third down week in a row, its lengthiest giving up streak since October previous year.
This particular rough patch started with a sharp selloff pushed mostly by tech stocks, that had soared over the summer.
Investors have been pulled straight into different directions this week. On a single hand, the Federal Reserve committed to make interest rates reduced for longer, which is great for companies wanting to borrow cash — and thus good for any inventory industry.
Yet lower rates also mean the central bank does not expect a swift rebound back again to normal, which puts a damper on residual hopes for a V-shaped recovery.
Meanwhile, Congress still hasn’t passed another fiscal stimulus package and Covid 19 infections are actually rising again throughout the world.
On a more complex mention, Friday also marked what is referred to as “quadruple witching,” which will be the simultaneous expiration of stock and index futures and options. It can spur volatility in the market.