This is developing into a very bad day for the market From October 2020
As Govt infections increased, questions about the upcoming election and additional government incentives weighed on the stock.
The Dove (UNDUE)
Fell over 1,000 points in a weak position. At the beginning of the afternoon it was trading 800 points or 2.4% lower.
The S&P 500 (SPX)
, The broader measure of the US stock market, is down 2.9% and is on track to end tomorrow in the correctional zone – 10% fall from its most recent high. Last week, the index recorded the worst week since March 2020.
Every day for the past week, stocks have been bad in the final hours of trading, which could be a bad sign for the next day, said JD Kinahan, DT Ameritrate’s chief market strategist. That negative feeling continued Monday as well.
Lots to digest
Investors also have a lot on their plate this week.
Revenue season has moved to bigger technology, incl Microsoft (MSFT)
, IBM (IBM)
, Intel (INTC)
And Apple (APL)
, Will announce the results this week.
Then there is the central bank meeting, which concludes with a policy statement on Wednesday and a press conference following it. As of Monday morning, market expectations for this week are that the Fed will keep interest rates close to zero for some time to come. CME FedWatch Tool
. But for the next meeting, which is not until March, a quarter percentage point increase is expected to be above 80%.
Expectations are only one part of the game. By the end of 2021 the central bank may decide that inflation is too high and rates will rise further – or sooner.
Treasury yields, which monitor interest rate expectations, hit a one-week high on Monday. The 10-year bond gained 1.72% in the afternoon, after passing 1.8% for the first time before the outbreak last week.
As the central bank seeks to reduce inflation by normalizing its epidemic policies, the US economy Fall from the Omicron variant
. Private sector manufacturing growth in the U.S. slowed in January as it put more pressure on the already-supplied supply chain and the current labor shortage. IHS Markit Flash is a code of joint purchasing managers
To make matters worse, Investors are watching with interest
The Situation in Ukraine
Fears grew that the country might be occupied by Russia.
News that the United States and the United Kingdom Withdrawal of some staff from local embassies
The situation will be resolved soon and European stock markets have plummeted.
Commodity markets are feeling the pressure of rising tensions and analysts believe oil prices could rise if the situation escalates. However, on Monday afternoon, US oil prices fell 2.2%, or $ 1.90 per barrel, to $ 83.23.
– Julia Horowitz of CNN Business contributed to this report.