The Dow is falling again as the technological wreck continues, with S&P reaching its lowest level in 52 weeks

The Dow (INDU) fell by about 506 points, or 1.5%. the S&P 500 (SPX) fell by 2.4%, a Nasdaq Composite (COMP) lost about 3.2%.

At one point, the ten-year treasury bond reached 3.19%, the highest yield since the end of 2018.

These moves follow an incredibly changeable week on Wall Street. It marked the fifth consecutive week of losses for all three major U.S. stock indexes.

“The Ukrainian war, the global energy shock and the risk that the Fed is trying to fight supply-side inflation have prompted a reassessment of macro scenarios among market participants,” Blackrock analysts wrote in a note Monday morning. “We also see little chance of a perfect economic scenario of low inflation and buzzing growth.”

Fed Chairman Jerome Powell told investors last Wednesday afternoon that future rate increases of more than half a percentage point “are not something that [Fed] is actively considering “, which led to a bullish growth of the market. All major indices rose by about 3%, and the S&P 500 and Dow had the best days in almost two years. By Thursday, investors concluded they were not so interested in change, worried about the growing chances of the Fed pushing the economy into a Dow recession fell by 1,120 points, or 3.3%, the S&P 500 fell 3.7%. The Nasdaq Composite fell 5.2%, its worst day since 2020.

“I’ve been in the markets for 25 years and I’ve never seen anything like it,” said Danielle DiMartino Booth, CEO and chief strategist at Quill Intelligence, a Wall Street and Federal Reserve research firm. “Violent is not just unstable.”

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The technology sector thinking about the future is particularly sensitive to higher rates: investors expect technology companies to grow electricity, but inflation and higher interest rates will take a big bite out of that profit. Facebook parent company Meta platform (FB) fell by about 4.3% and the owner of Google Alphabet (GOOGL) fell by 1.6%.
Amazon (AMZN), Apple (AAPL) and Netflix (NFLX) they were each down almost 3%.
Data analytics firm Palantir, meanwhile, fell 21% after announcing mixed quarterly earnings. Electric vehicle maker Rivian has fallen nearly 19% as the stock lockout period expires. Ford (F) owns 102 million shares in the company and lost money at work.

Investors are waiting for a key measure of inflation, the Consumer Price Index, later this week.

“If you want to be a person half full of a cup, the lack of new bad news is something to hold on to and on Wednesday U.S. core and headline CPI inflation would fall,” Societe Generalea strategist Kit Juckes wrote in a Monday note. Falling inflation could “calm the markets enough” and reverse the sale by the weekend, he said.

However, as the earnings season draws to a close, forecasts for the next quarter remain weak. Mention of ‘weak demand’ in earnings reports is now at a higher level than the second quarter of 2020, according to research by Bank of America analysts.

“Our guideline ratio, earnings audit ratio and corporate sentiment reading have all fallen to the lowest of [the second quarter of 2020]”they wrote,” adding concerns about the recession. “

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