S&P 500, Dow drops to extend sale

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Stocks fell on Friday to extend Thursday’s losses as investors turned away from growth stocks in anticipation of tightening monetary policy next year.

The S&P 500 and the Dow moved lower while the Nasdaq turned slightly positive. The Dow Jones was the day’s biggest lag, losing more than 1% as stocks in financials, including Goldman Sachs (GS) and JPMorgan Chase (JPM), lagged.

FedEx (FDX) shares surged after the shipping giant raised its full-year profit forecast, posted better-than-expected second-quarter financial results, and authorized a new 5-year share buyback program. billions of dollars. Rivian (RIVN), meanwhile, saw its shares fall following its first quarterly report since its IPO last month. The electric vehicle manufacturer stated in his letter to shareholders it expected to be “a few hundred vehicles off” than its previous target of producing 1,200 units by the end of this year.

Investors this week focused on the Federal Reserve’s updated outlook for monetary policy for next year, with central bank projections released mid-week suggesting the Fed could raise interest rates three times next year.

The specter of higher rates – and a low liquidity environment as the central bank also accelerates the process of reducing its asset purchases – continued to weigh heavily on longer-lived tech and growth stocks. highly valued on the potential for future profits. The Nasdaq Composite underperformed to fall 2.5% on Thursday and regain all of its gains after a rally on Wednesday. The index fell 5% over the past month to Thursday’s close. And shares of some notable tech stocks extended their decline on Friday, with Apple shares (AAPL) falling about 1% after falling nearly 4% on Thursday.

On the flip side, cyclical stocks in the energy and financials sectors outperformed on Thursday, with the outlook for higher interest rates and stronger growth seen to be beneficial for these sectors.

“What investors need to understand is that we are going through a major monetary policy transition,” said Troy Gayeski, chief market strategist at FS Investments, told Yahoo Finance Live on Thursday. “The Fed has been implementing emergency policies arguably much longer than it should have been, and as money supply growth slows as it slows balance sheet expansion and increases finally next year, we could at least expect more volatility in the markets. And that’s really what we saw last month. ”

“The biggest difference between now and six months ago, or even over a year ago, is that you could do just about anything and were confident it was going to grow. was booming, we had a lot of fiscal stimulus, we still had unprecedented monetary stimulus, “he added. “And it’s a very different environment in 2022 where you’ll have to choose a lot more carefully.”

1:30 p.m. ET: Nasdaq turns positive

Here are the main moves in the markets at 1:30 p.m. ET:

  • S&P 500 (^ GSPC): -20.78 (-0.45%) to 4,647.89

  • Dow (^ DJI): -382.96 (-1.07%) to 35,514.68

  • Nasdaq (^ IXIC): +51.97 (+ 0.34%) to 15,232.41

  • Raw (CL = F): $ -1.62 (-2.24%) to $ 70.76 per barrel

  • Gold (CG = F): + $ 6.20 (+ 0.34%) to $ 1,804.40 per ounce

  • 10-year cash flow (^ TNX): -2.7 bps for a yield of 1.3950%

11:38 a.m. ET: AMC Entertainment and GameStop leap in new meme rally

Stocks of equities such as AMC Entertainment (AMC), GameStop (GME) and BlackBerry (BB) surged on Friday as investors bought lower shares of riskier assets earlier in the week.

AMC shares were up more than 17% by mid-morning Friday. Previously, stocks had fallen 42% in the month up to Thursday’s close, as volatility returned to the darlings of meme trading at the start of the year. GameStop shares also rose to reverse some losses after falling 31% in the past month.

Yet since the start of the year, these stocks have risen sharply, largely due to renewed interest earlier this year. AMC shares are up 1,053% year-to-date through Thursday’s close, while GameStop shares are up 667% during that time frame.

9:30 a.m. ET: Stocks open lower to capitalize on losses

All three major indices opened in the red and headed for a straight day of losses on Friday as tech stocks hit for another session. The Nasdaq fell nearly 1% just after the opening bell, while the Dow fell about 200 points, or 0.5%. The S&P 500 lost another 0.7%.

The Treasury yield curve flattened as long-term yields fell on Friday morning. The benchmark 10-year yield fell almost 3 basis points to below 1.4%.

7:20 a.m. ET Friday: Stock Futures Point To Lower Open, Nasdaq Extends Lows

Here’s where the markets were trading on Friday morning before the opening bell:

  • S&P 500 Futures Contracts (ES = F): -12.25 points (-0.26%), to 4,656.50

  • Dow Futures (YM = F): -12 points (-0.03%), to 35,890

  • Nasdaq Futures (NQ = F): -104.25 points (-0.66%) to 15,766.25

  • Raw (CL = F): $ -1.33 (-1.84%) to $ 71.05 per barrel

  • Gold (CG = F): + $ 11.60 (+ 0.65%) to $ 1,809.80 per ounce

  • 10-year cash flow (^ TNX): -1.5 bps for a yield of 1.407%

6:01 p.m. ET Thursday: Stable stock futures after tech sell off

Here are the main moves in the markets as the overnight session started on Thursday:

  • S&P 500 Futures Contracts (ES = F): +5.25 points (+0.11%), at 4,674.00

  • Dow Futures (YM = F): +52 points (+ 0.14%), at 35,954.00

  • Nasdaq Futures (NQ = F): +6 points (+ 0.04%) to 15,876.50

NEW YORK, NEW YORK – DECEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City. While investors are still concerned about rising prices due to inflation, the Dow Jones Industrial Average lost 175 points in Monday morning trading. (Photo by Spencer Platt / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on twitter


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