24.01.202213:35 Forex Analysis & Reviews: US stock indices are permanently declining and continue to scare with loud anti-records

Following the results of the session on Friday, American stock indicators significantly sank, while the S&P 500 and NASDAQ Composite indicators closed weekly trading with the maximum decline since the spring of 2020. The leaders of the fall were the raw materials, technology, and consumer services sectors.

So, on Friday, the NASDAQ Composite dropped below the psychological mark of 14,000 points. The day before, the stock indicator fell into the correction zone when its fall from the November peak turned out to be above 10%.

Exchange Rates 24.01.2022 analysis

The permanently negative dynamics in the US securities market are caused by the large-scale withdrawal of its participants from the risks associated with a potential tightening of monetary policy by the Federal Reserve. Another downward factor for the US stock market was weaker than experts predicted, quarterly reports of the largest US corporations.

Well, the last important negative incentive for America's leading stock markets continues to be geopolitical risks. The combination of these factors significantly affects the overall situation in the market.

As a result, on the last trading day of the past week, the Dow Jones Industrial Average sank by 1.3% to 34,265 points and reached a monthly low. The main favorites among the DJIA components on Friday were the securities of McDonald's Corporation (+0.58%), Procter & Gamble Company (+0.38%), and Nike Inc (+0.15%). The main outsiders were shares of Walt Disney Company (-6.94%), Boeing Co (-4.09%), and Visa Inc Class A (-3.93%).

The S&P 500 stock index lost 1.89%, dropping to 4,397 points. CF Industries Holdings Inc (+2.64%), Ventas Inc (+2.22%), and VF Corporation (+2.06%) led the list of growth among the components of the Standard & Poor's 500 indicators. The lowest values were shown by shares of Netflix Inc (-21.79%), SVB Financial Group (-10.21%), and Huntington Bancshares Incorporated (-8.99%).

The Nasdaq Composite dropped 2.72% to 13,769 points. The growth leaders among the Nasdaq Composite components were Blue Star Foods Corp (+100.00%), Pintec Technology Holdings Ltd (+55.31%), and CF Acquisition Corp V (+31.31%). Among the main outsiders were the securities of Oceanpal Inc (-52.50%), ReTo Eco-Solutions Inc (-28.10%), and Renovare Environmental Inc (-24.70%).

On the NYSE New York Stock Exchange, the number of shares that lost in price (2690) exceeded the number of those that increased in value (630), and the quotes of 112 securities remained unchanged. On the US NASDAQ stock exchange, shares of 3244 companies declined in price, 728 increased, and 150 remained virtually unchanged.

Meanwhile, the Cboe Volatility Index, formed based on options trading indicators on the S&P 500, jumped by 12.74% to 28.85 - a new monthly high.

Irina Maksimova,
Analytical expert of InstaForex
© 2007-2022
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