It was an unstable trading session on Wall Street as the S&P 500 inched closer to bear market territory. The broad-market index dipped lower Thursday and teetered at 19% below its record reached in January. The Dow Jones Industrial Average also slipped the day after its worst drop since 2020. The tech-heavy Nasdaq Composite declined. “The main takeaway for investors is to brace for extended volatility,” said Greg Bassuk, CEO at AXS Investments. “We believe that volatility is going to be the investor narrative for the balance of Q2, and frankly, you know, for the balance of 2022.” |
A number of stocks in the S&P 500 hit new 52-week lows on Thursday, depicting how broad the sell-off has become. Target shares are trading at lows not seen since November 2020. Walmart shares are at their lowest point since July 2020. Shares of Bank of America and Charles Schwab dropped to their worst level since February 2021.
“The issue now is there really appears to be nowhere to hide,” wrote Jonathan Krinsky, chief market technician at BTIG. On Wednesday, “they came for consumer names, but they still sold beaten down growth. In other words, money is rotating into cash instead of between different sectors.” |
