Highlights
Stocks dropped again Friday to end a disastrous week of losses with no end in sight for the Iran war and elevated energy prices. The Dow dipped 1.0 percent while the S&P 500 lost 1.5 percent and the Nasdaq dropped 2.0 percent. Bond yields jumped on inflation worries, the dollar was mixed, and WTI crude oil prices rose.
News that the US was sending more warships and soldiers to the Middle East rattled investors anew on Friday as they fret that the US will escalate its involvement in the conflict and that high energy prices will persist and may worsen.
Heavily weighted technology and megacap shares sold off to weigh on the major averages as risk aversion continued. Financials and energy shares were the only ones to do well. On the downside, worst performers included tech, communications services, real estate, industrials, and consumer discretionary.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.