Is the market crashing? No. Here’s what’s happening!

As the stock market has convulsed lower and yields for bonds have surged in recent weeks, culminatingAs the stock market has convulsed lower and yields for bonds have surged in recent weeks, culminating in a so-called correction for the Nasdaq Composite Index, average Americans are wondering what’s amiss with Wall Street.Show more

Increasingly, Google searches have been focused on the state of the market (and the economy), and for a good reason.

What’s happening?
Equity benchmarks are being substantially recalibrated from lofty heights as the economy heads into a new monetary-policy regime in the battle against the pandemic and surging inflation. On top of that, doubts about parts of the economy, and events outside of the country, such as China-U.S. relations, the Russia-Ukraine conflict, and Middle East unrest, are also contributing to a bearish, or pessimistic tone, for investors.

The confluence of uncertainties has markets in or near a correction or headed for a bear market, which are terms that are used with more precision when talking about market declines.

The recent drop in stocks, of course, is nothing new but it may feel a bit unsettling for new investors, and, perhaps, even some veterans.

The Nasdaq Composite entered correction last Wednesday, ringing up a fall of at least 10% from its recent Nov. 19 peak, which meets the commonly used Wall Street definition for a correction. The Nasdaq Composite last entered correction March 8, 2021. On Friday, the Nasdaq Composite stood over 14% below its November peak and was inching toward a so-called bear market, usually described by market technicians as a decline of at least 20% from a recent peak.

Meanwhile, the blue-chip Dow industrials stood 6.89% beneath its Jan. 4 all-time high, or 3.11 percentage points from a correction, as of Friday’s close; while the S&P 500 was down 8.31% from its Jan. 3 record, putting it a mere 1.69 percentage points from entering a correction.

Article from: MarketWatch.com
Title: Is the market crashing? No. Here’s what’s happening to stocks, bonds as the Fed aims to end the days of easy money, analysts say
Date: Jan. 23, 2022
Source URL: https://www.marketwatch.com/story/is-...

#Stockmarket #Crash #NASDAQ #DAWJONES in a so-called correction for the Nasdaq Composite Index, average Americans are wondering what’s amiss with Wall Street.

Increasingly, Google searches have been focused on the state of the market (and the economy), and for a good reason.

What’s happening?
Equity benchmarks are being substantially recalibrated from lofty heights as the economy heads into a new monetary-policy regime in the battle against the pandemic and surging inflation. On top of that, doubts about parts of the economy, and events outside of the country, such as China-U.S. relations, the Russia-Ukraine conflict, and Middle East unrest, are also contributing to a bearish, or pessimistic tone, for investors.

The confluence of uncertainties has markets in or near a correction or headed for a bear market, which are terms that are used with more precision when talking about market declines.

The recent drop in stocks, of course, is nothing new but it may feel a bit unsettling for new investors, and, perhaps, even some veterans.

The Nasdaq Composite entered correction last Wednesday, ringing up a fall of at least 10% from its recent Nov. 19 peak, which meets the commonly used Wall Street definition for a correction. The Nasdaq Composite last entered correction March 8, 2021. On Friday, the Nasdaq Composite stood over 14% below its November peak and was inching toward a so-called bear market, usually described by market technicians as a decline of at least 20% from a recent peak.

Meanwhile, the blue-chip Dow industrials stood 6.89% beneath its Jan. 4 all-time high, or 3.11 percentage points from a correction, as of Friday’s close; while the S&P 500 was down 8.31% from its Jan. 3 record, putting it a mere 1.69 percentage points from entering a correction.

Article from: MarketWatch.com
Title: Is the market crashing? No. Here’s what’s happening to stocks, bonds as the Fed aims to end the days of easy money, analysts say
Date: Jan. 23, 2022
Source URL: https://www.marketwatch.com/story/is-...

#Stockmarket #Crash #NASDAQ #DAWJONES