Stocks are tumbling at the end of a turbulent week
The US stock market is on track for another day of sharp losses at the end of a turbulent week.
The Dow is down 1.1%, or 310 points, in the early afternoon, headed for its second straight day of losses. The S&P 500 fell 1.4%, while the Nasdaq Composite slipped 1.7%. It would be the third day of losses in a row for both indexes.
Worse still, it looks like it will be the third round of weekly losses for the stock indexes.
This rough patch began with a sharp selloff driven primarily by tech stocks, which had soared over the summer.
Investors have been pulled into different directions this week. On one hand, the Federal Reserve committed to keep interest rates lower for longer, which is good for companies wanting to borrow money — and therefore good for the stock market.
Yet lower rates also mean the central bank doesn’t expect a swift rebound back to normal, and that puts a damper on residual hopes for a V-shaped recovery.
Meanwhile, Congress still hasn’t passed another fiscal stimulus package and Covid-19 infections are rising again around the world.
On a more technical note, Friday also marked what’s known as “quadruple witching,” which is the simultaneous expiration of stock and index futures and options. It can spur volatility in the market.
