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Stocks have begun a new week with a total loss. Last week was the worst performance of a major index since March 2020.
Spencer Pratt / Getty Images Getty Images
Monday’s share price suffered a significant loss as the Dow Jones Industrial Average fell by more than 1,000 points and the S & P 500 traded in the modified territory. Key indices have been on track for the worst daily performance since 2020.
The
S & P 500
It fell 3.8% around noon EST, widening losses for the fifth straight day, heading for the worst daily decline since the 5.9% decline on June 11, 2020. The index is currently down more than 10% from its all-time high on January 3rd. If the S & P 500 closes below 4,316.905, the index will be revised since February 2020.
The
Dow Jones Industrial Average
It fell by 1,000 points or more than 3%. It has fallen about 9% from its all-time high on January 4, and since February 28, 2020, when the index fell for the seventh consecutive day, we are on track for the seventh consecutive decline and the longest consecutive loss. The index is on its worst day since it fell 3.4% on October 28, 2020. It must be closed below 33,119.685 to enter the modification area.
The
Nasdaq Composite Index
It fell 4.8% and was set to the worst performance with losses for the fifth consecutive day since it fell nearly 5% on September 3, 2020. Its recent highs. The index has been advancing at its worthwhile monthly performance pace since October 2008.
The
Russell 2000 index
Percentage of small cap stocks that entered the bear market territory on Monday. Below 1,954.194, it’s down more than 20% from the record high on November 8th.
Mark Hefel, chief investment officer of UBS’s Global Wealth Management, said the sale on Monday was “caused by concerns over the tightening of the US Federal Reserve and uncertainty about the consequences of current tensions between Russia and Ukraine. I have. ”
Investors are becoming more and more concerned that tensions at the Russian-Ukrainian border could lead to military aggression. The North Atlantic Treaty Organization has dispatched ships and jet fighters to Eastern Europe in response to Russia’s military buildup near Ukraine. The European Union also plans to provide Ukraine with loans and grants totaling more than $ 1 billion.
The New York Times reports that President Joe Biden is considering deploying thousands of troops in Eastern Europe as well. The president is also in effect meeting with European allies on Monday to discuss the situation.
Overseas, Pan-Europe
Stoxx 600
Monday and Hong Kong fell 3.7%
Hang Seng Index
The day ended with a 1.2% deficit.
Certainly, I feel that the stock bubble is bursting. Last week, the three major indices suffered the worst week since 2020. The stock market is concerned about monetary tightening policies. The S & P 500 made a remarkable move, rising 92% from the bear market bottom set in March 2020 as investors enjoyed the Federal Reserve, which was obsessed with economic and market support. The Fed is now in the opposite position as it seeks to combat high inflation.
Traders expect four rate hikes in 2022, which the Fed will do to curb inflation and could hinder economic growth. In addition, bond yields have risen this year. This is part of the response to the Fed’s termination of its bond purchase program. As a result, the value of future profits declines, especially for technology and growth stocks.
SMEs also tend to be hit when economic growth slows. The higher borrowing costs brought about by higher interest rates are a burden for SMEs.
It will focus on the Fed this week. The central bank will set interest rates this Wednesday. The market does not expect a rate hike until March, but investors will monitor bank statements to see if a March rate hike is now more or less likely.
In the commodity sector, crude oil prices were declining. West Texas Intermediate futures contracts fell 2.9% to $ 82.67 a barrel.
Cryptocurrencies are now in the red.
Bitcoin,
Key digital assets traded above $ 43,000 last Thursday, but have since fallen below $ 35,000, according to CoinDesk data. It has decreased by almost 4% in the last 24 hours.It got worse for small peers
ether,
This has decreased by about 8% over the past day to about $ 2,300. The tokens behind the Ethereum network changed hands over $ 3,200 last Thursday.
The significant sell-out of cryptocurrencies was triggered by the possibility of a ban in Russia and the general mood for risky assets.
In addition to the Fed’s meetings, investors are watching over earnings. Within the next two weeks,
Apple
(Ticker: AAPL), Amazon.com (AMZN),
Microsoft
(MSFT),
alphabet
(GOOGL), and
Tesla
(TSLA) reports revenue. If these stocks make a big move in earnings, they’re worth trillions of dollars in total, so move the S & P 500 and Nasdaq in either direction.
The six stocks on the move on Monday are:
Coles
(KSS) Soaring 35% following a series of news reports that retailers may soon receive a second takeover offer, including news reports from Reuters citing anonymous sources.It sent a share of
Macy’s
(M) and
Nordstrom
(JWN) Increased by 8.1% and 3.1%, respectively.
Unilever
(UL) rose 6.9% following a report from the Financial Times, citing an anonymous source that activist hedge fund Trian Partners has invested in a consumer goods giant.
snap
(SNAP) Shares fell 10.4% after being downgraded from Outperform to Neutral on Wedbush.
Netflix
(NFLX) Shares fell 10.7% after falling 22% on Friday due to dim subscriber growth prospects. On Monday, the stock was downgraded from a Jeffreys purchase to a hold.
Write to Jacob Sonenshine (jacob.sonenshine@barrons.com) and Jack Denton (jack.denton@dowjones.com).
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