This week we saw more falls on markets as the volatility continued and uncertainty raged. So in this weeks market review we are going to consider some of the factors which are amplifying the gravity effects. These forces are substantial, to say the least.
While US stocks came off session lows, bonds climbed at the end of a week marked by a standoff between the West and Russia as well as worries about the Federal Reserve’s next policy steps. As a result, volatility continues with the US fear index sitting at 28.12. The Benchmark U.S. stock indexes hit a second week of losses, undermined by the standoff between Russia and the West over Ukraine, as well as the prospect of tighter Federal Reserve monetary policy. And some $2.2 trillion of U.S. stock options expired on Friday. Oh, and U.S. markets will be closed on Monday in observance of Presidents Day.
The Dow Jones Industrial Average was down 0.68%, at around 34,072. The S&P 500 index fell 0.78%, to trade around 4,347, with information technology segment down -0.95% and energy the worst performers among the index’s 11 sectors.
The NASDAQ Composite Index declined 1.23%, to about 13,536. A so-called death cross crystallized in the index, a bearish chart pattern that has at times presaged further weakness.
For the week, the Dow is down around 2%, while the S&P 500 was heading for a 1.7% decline and NASDAQ was on track for a decline of almost 1.9%.
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– There were a number of indicators already flashing an orange light in the last 8 (!!!!) months.
– Russia is NOT going to invade Ukraine !!!!