Apple plunges into bear market, Dow falls for six consecutive days

As the rebound failed again, the U.S. The selling of shares continued, and the stock market fell on the 12th. (The Associated Press)

As the rebound failed again, the U.S. The selling of shares continued, and the stock market fell on the 12th.

Dow Jones Industrial AverageindexIt fell 103.81 points, or 0.33%, to 31,730.3 for the sixth consecutive day. The S&P 500 lost 5.09 points, or 0.13%, to 3,930.08. The Nasdaq Composite ended 6.73 points, or 0.06%, higher at 11,370.96.

The stock index is likely to continue its decline this week.

Stocks try to bounce back in early trading, as traders take deep lossesstore, The Dow rose 80 points to a session high, while the Nasdaq gained 1.6%. The Dow fell more than 500 points at one point, while the Nasdaq fell 2.25%.

The all-time index hit a new low this year, closing more than 18% below its 52-week high, which is . is close tobear marketArea.

“Even in a bear market, rallies can be very bullish in a bear market,” Truist strategist Keith Lerner said of the morning move. “I think, at least in the short term, given the current level of oversoldiness, there are some people. This is at least a silver lining in the sea of ​​red and gloom over the past few days that are starting to intervene in some of the hardest-hit areas. doing.”

As the market struggled to pick a direction again, and the historical index was on the verge of a bear market, gains converged. Among the major indices, the Nasdaq is the only one in bear market territory to fall more than 30% from its all-time high as tech stocks continue to tumble.

“This is a market that runs out of emotion rather than rational reasoning,” said Jim Lebenthal, analyst at Serity Partners. “Despite the last few days, there’s been a rebound every morning and then it’s gone.”

Some heavily shorted stocks led a brief opening rally and continued higher. Lucid gained 13.2%, while GameStop and AMC gained 30% and 20%, respectively, before turning down gains. Rivian Automotive also rose 17.96% after reporting its latest earnings results. Caravan, which hit a two-year low in early trade, gained 24.67 per cent.

While it’s not clear what is driving Lucid, GameStop and AMC’s boom, it could mean that hedge funds are profiting from this year’s big losses from overvalued pandemic winners, and eventually closing positions. Just buying shares.

Shorting is a strategy in which funds sell shares borrowed from investment banks, so in order to close the trade, they need to buy the shares and return them. A short squeeze is a rally caused by buying a stock.

To be sure, trading behavior may represent many investors who are betting heavily on battered meme stocks, anticipating a big boost, said Randy Frederick, general manager of trading and derivatives at the Schwab Financial Center. Luck.

“I think it’s a desperate move, it’s a gamble, it’s a lottery with the hope of getting a big prize, and they can do it right, but they probably won’t,” he said.

Apple fell 2.69% and plunged into a bear market, down 22% from its 52-week high. Saudi Aramco on Tuesday overtook the tech giant to become the world’s most valuable company. Meanwhile, Amazon and Meta Platform grew 1.48% and 1.32%, respectively.

Meanwhile, Disney fell 0.86% to a 2-year low. The media giant saw higher-than-expected growth in streaming subscribers, but warned of the impact of the coronavirus on Asia Parks’ business.

The latest US inflation data is out. The latest Producer Price Index (PPI), which measures wholesale prices, rose 11% year-on-year.

The US government released the latest consumer price index (CPI) on 11th, showing year-on-year growth of 8.3% in April, higher than economists expected and close to a 40-year high of 8.5% Is. The report prompted investors to continue selling riskier assets such as technology stocks.

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