Stocks close the volatile week in the red as traders evaluate Omicron and Fed signals of a rate hike – News Couple

Stocks close the volatile week in the red as traders evaluate Omicron and Fed signals of a rate hike

Stocks pulled back on Friday to extend their losses on Thursday, with stocks ending a volatile week in the red as investors assessed the ongoing risks of the Omicron variable and the Federal Reserve’s signals for the possibility of multiple rate hikes next year.

The S&P 500 and Dow fell sharply while the Nasdaq was trading slightly lower after Thursday’s sell-off. The Dow was the slowest on the day, losing more than 1% as financial stocks including Goldman Sachs (GS) and JPMorgan Chase (JPM) lagged.

FedEx (FDX) shares jumped after the shipping giant raised its full-year earnings forecast, delivered better-than-expected results for its fiscal second quarter and authorized a $5 billion share buyback program. Meanwhile, Rivian (RIVN) saw shares plummet after its first quarterly report since its initial public offering last month. The electric vehicle manufacturer said in its shareholder letter that it expects to be “a few hundred vehicles away” from its previous goal of producing 1,200 units by the end of this year.

Investors’ main focus this week has remained unchanged on the Fed’s updated monetary policy outlook for the year ahead, with the central bank’s midweek projections delivered that the Fed may raise interest rates three times next year.

The specter of high interest rates – and a low liquidity environment where the central bank is also accelerating the process of curtailing asset purchases – continues to weigh on long-term technology and growth stocks that undervalue potential future earnings. The Nasdaq Composite underperformed, down 2.5% on Thursday and reclaiming all of its gains after Wednesday’s rally. The index is down 5% over the past month through Thursday’s close. Shares of some notable tech stocks extended their decline Friday, with Apple (AAPL) shares down about 1% after dropping about 4% on Thursday.

On the other hand, cyclical stocks outperformed the energy and financial sectors on Thursday, with expectations of higher interest rates and stronger growth seen to benefit these two sectors.

“The thing that investors need to understand is that we are going through a major transition in monetary policy,” Troy Gaeske, senior market analyst at FS Investments, said. Yahoo Finance Live on Thursday. “The Fed has been running arguably much longer emergency policies than it should have been, and as money supply growth slows as it eases balance sheet expansion and eventually lifts next year, one would at least expect more volatility in the markets. That really is. What we saw last month.”

“The biggest difference between now and six months ago, or even more than a year ago, is that you can go far in pretty much anything and you were confident it would go up. The economy was booming, we had a lot of fiscal stimulus we still had unprecedented stimulus for policy cash”. “It’s a completely different environment in 2022 where you will have to pick and choose more carefully.”

4:01 p.m. ET: Stocks are down

This is where the markets are closed on Friday trading

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -48.12 points (-1.03%) to 4,620.55

  • dow (^ DJI): -531.08 points (-1.48%) to 35366.56 points

  • Nasdaq (^ ninth): -10.75 points (-0.07%) to 15,169.68

  • raw (CL = F.):- $1.94 (-2.68%) to $70.44 per barrel

  • gold (GC = F.):- $0.50 (-0.03%) to $1,797.70 per ounce

  • Treasury for 10 years (^ degeneration): -1.3 basis points to gain 1.409%

3:44PM ET: Bitcoin records its fifth consecutive weekly decline

Bitcoin prices fell on Friday for the fifth consecutive week, tracking declines in other risky assets amid expectations of tighter monetary policy amid rising inflation.

Prices of the largest cryptocurrency by market capitalization are down nearly 4% to trade near the $46,000 mark as of Friday afternoon. Other major cryptocurrencies including Ethereum were also pressured, dropping more than 4% to fall below $3,900.

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

Here are the major moves in the markets as of 1:30 PM ET:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -20.78 (-0.45%) to 4647.89

  • dow (^ DJI): -382.96 (-1.07%) to 35514.68

  • Nasdaq (^ ninth): +51.97 (+0.34%) to 15232.41

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

  • gold (GC = F.): + $6.20 (+0.34%) to $1,804.40 per ounce

  • Treasury for 10 years (^ degeneration): -2.7 basis points to produce 1.3950%

11:38AM ET: AMC Entertainment, GameStop jump in resurgent meme stock rally

Stocks including AMC Entertainment (AMC), GameStop (GME) and BlackBerry (BB) jumped on Friday as investors bought into shares of riskier assets earlier this week.

AMC shares are up more than 17% mid-morning on Friday. Previously, shares had fallen 42% in the month to Thursday’s close, as volatility returned to meme-trading darlings earlier this year. GameStop shares also advanced to reverse some losses after falling 31% over the past month.

However, these stocks have risen sharply year-to-date, largely due to increased interest at the beginning of this year. AMC shares are up 1,053% in the year-to-date to Thursday’s close, while GameStop shares are up 667% over that period.

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

The three major indexes opened in the red and headed for consecutive losses on Friday, with technology stocks taking a hit for another session. The Nasdaq fell about 1% right after the opening bell, while the Dow Jones fell about 200 points, or 0.5%. The S&P 500 fell another 0.7%.

The Treasury yield curve flattened as yields fell on the long end on Friday morning. The benchmark 10-year yield fell nearly 3 basis points to less than 1.4%.

7:20 a.m. ET on Friday: Stock futures point to a lower open, Nasdaq extends its decline

Here’s where the markets are trading as of Friday morning before the opening bell:

  • S&P 500 futures contractsES = F.): -12.25 points (-0.26%) to 4,656.50 points

  • Dow futures contractsYM = F.): -12 points (-0.03%) to 35,890 points

  • Nasdaq futures contractsNQ = F.): -104.25 points (-0.66%) to 15,766.25

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

  • gold (GC = F.): + $11.60 (+0.65%) to $1,809.80 per ounce

  • Treasury for 10 years (^ degeneration): -1.5 basis points to get 1.407%

6:01pm ET Thursday: Stock futures flat after tech sell-off

Here are the main moves in the markets as the evening session began on Thursday:

  • S&P 500 futures contractsES = F.): +5.25 points (+0.11%) to 4674.00

  • Dow futures contractsYM = F.): +52 points (+0.14%) to 35954.00

  • Nasdaq futures contractsNQ = F.): +6 points (+0.04%) to 15876.50

NEW YORK, NY – DECEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City. With investors still worried about price hikes due to inflation, the Dow Jones Industrial Average was down 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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