US Stock Market Plummets, Nasdaq down by 2.4% and Dow by 4%
The Dow Jones Industrial Average is on track to have its longest weekly losing streak in nearly a century as a result of the stock market selloff.
The Dow Jones Industrial Average (INDU) fell 270 points, or 0.9 percent, in current trading after started the day higher. This week, the Dow has lost over 4% of its value.
If the Dow closes the week lower, as it appears to be on track to do, it will be the eighth consecutive weekly loss. According to FactSet statistics analysed by LPL Financial, that would be the longest weekly losing run since 1923.
The long losing streak reflects Wall Street’s gloomy mood, as investors worry about soaring inflation and what the Federal Reserve will have to do to bring prices under control.
According to Bespoke Investment Group, the broader S&P 500 is on track for its seventh straight weekly loss, which would be its longest since March 2001. The S&P 500 entered bear market territory on Friday, down 20% from its all-time high in January.
“There are numerous reasons stocks have done as poorly as they have recently, from inflation to a hawkish Fed, to war, to supply chain concerns, to China on lockdown, to a weakening economy,” LPL Financial’s Ryan Detrick wrote in an email.
The bright lining, according to Detrick, is that history suggests stocks are oversold.
“A major bounce-back rally is likely if we get any good news,” he said.