S&P 500 has now registered five consecutive weekly declines, its
longest streak of losses since June 2011. Stocks rallied earlier last
week, before suffering their largest-single day drop since the start
of the pandemic on Thursday. Futures point to another drop in U.S.
stocks this morning.
driving the wild swings?
financial markets are coming to grips with a stunning policy change
by the Federal Reserve,
The Times columnist Jeff Sommer
Markets have become so accustomed to the Fed’s loose monetary
policy of the past two decades that investors don’t know how to
react now that the central bank is pulling back and trying to slow
the economy. “This is a very big change, and the markets are having
trouble processing it,” said Robert Dent, senior U.S. economist for
to the uncertainty are continued lockdowns in China, surging
inflation, supply constraints and a spike in oil prices.
has complicated the outlook for the global economy, though some Wall
Street forecasters remain optimistic. In a research note published
yesterday, Goldman Sachs said that it forecasts a recovery in major
equity indexes. “The tightening in U.S. financial conditions has
somewhat rebalanced the risks to the Fed’s mandate and potentially
set the stage for a stabilization in the financial market
environment,” the note said.
stocks and crypto prices are falling again.
this morning hit its lowest level since July 2021. Tech companies,
both global powerhouses and start-ups, are also feeling the pain.
Share prices for Netflix, Meta and Peloton are all down substantially
this year. Some strategists are saying prices could continue to fall
until they land back where they were before the pandemic. For tech
stocks, that would be a further 25 percent drop. For crypto, it could
be a plunge of more than 60 percent.
some tech companies freezing hiring or laying off employees,
investors are split
Some see a temporary slowdown, while others say it is a sign of a
deeper slump to come,
Wall Street Journal reports
Elon Musk, on the other hand,
Twitter could quintuple its revenue by 2028.