Wall Street’s main indexes ended sharply lower on Wednesday, with the tech-heavy Nasdaq confirming it was in a correction, now down 10.7% from its November 19th closing high.
As investors continued to worry about higher U.S. Treasury yields and the Federal Reserve tightening monetary policy, the Nasdaq ended down 10.7% from its Nov. 19 closing record high, as stocks sold off into the market close. A correction is confirmed when an index closes 10% or more below its record closing level.
On Wednesday, Apple shares fell 2.1%, weighing most on the Nasdaq, while declines in Tesla and Amazon also dragged on the index.
Stocks have gotten off to a rocky start in 2022, as a fast rise in Treasury yields amid concerns the Fed will become aggressive in [attempting to control] inflation has particularly hit tech and growth shares. The benchmark S&P 500 is down about 5% so far this year.
The Dow Jones Industrial Average fell 339.82 points, or 0.96%, to 35,028.65, the S&P 500 lost 44.35 points, or 0.97%, to 4,532.76 and the Nasdaq Composite dropped 166.64 points, or 1.15%, to 14,340.26.
Investors are looking to next week’s Fed policy meeting for more clarity on central bankers’ plans to rein in inflation. Data last week showed U.S. consumer prices increased solidly in December, culminating in the largest annual rise in inflation in nearly four decades.
MacDailyNews Take: Panic breeds profit for the patient.
Be fearful when others are greedy and greedy when others are fearful. – Warren Buffett
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Nasdaq Futures hit its 200 day moving average. It hasn’t hit or been below that since April of 2020. If it doesn’t hold above the 200, it could get ugly. But if youre in quality companies, the potential ugliness is just a stormy season in the yearly climb.
Also of note, Apple is about 9% off its all time high. It’s the least drop of FAAMG. But that may mean it’ll drop more during this Bear. MSFT was plummeting but 300 is supporting it. GOOG is seeing some 2750 support (for disclosure I own Apple, MSFT, GOOG. NASDAQ drops hit me the most but these stocks are a long term hold for me).
Based on closing marketcap data from refinitiv between Jan.3 and today (Jan.20), APPL has dropped further than MSFT and GOOG. 10.03%, 9.96%, 8.29% respectively.