S&P 500 plunges 3% into correction territory ahead of key Fed meeting and tech earnings

[progree]

Last edited Mon Jan 24, 2022, 07:21 PM - Edit history (4)

Source: Business Insider

Stocks tumbled again Monday, with the S&P 500 falling as much as 3% to enter a correction as investors braced for the Federal Reserve to sharply tighten monetary policy to tame hot inflation, while major tech companies report earnings this week.

The S&P 500 during Monday's session marked an 11% decline from its all-time high of 4818.62 logged just two weeks ago on January 4. Six of its 11 sectors were down by more than 2%, led by the energy group as oil prices slumped.

The Dow Jones Industrial Average was close to a correction, down by 9.4% from its all-time high of 36,952.65 notched on January 5. The Nasdaq Composite entered into a correction last week with its drop of more than 10% from a recent high.


Read more: https://www.msn.com/en-us/money/markets/s-p-500-plunges-3-into-correction-territory-ahead-of-key-fed-meeting-and-tech-earnings/ar-AAT5Eu2?ocid=msedgntphdr

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I'm not a huge fan of using LBN for the stock market tick tock, but Dow is approaching 1000 down and broader market even worse shape percentage wise ...

As I type this 10:50 AM CT:
Dow down 933 (-2.65%)
S&P 500 down 149 (-3.40%)
NASDAQ down 537 (-3.90%)

To get updates, I usually use this: https://finance.yahoo.com/ (11:38 AM CT - it's worse than above)

A "correction" is 10% below a recent high. (Bear markets begin at 20% below)

The S&P 500 CLOSING all time high, for people who track it that way, was 4797 on January 3.

No paywall on the MSN hosted article

Yes, as commenters say, it will some day, probably soon, be regarded as a not-to-be-missed buying opportunity.


Unfortunately, it's not just the RW that's beating the inflation drum:

Inflation is 'really hurting Arizona families,' Senator Mark Kelly says, 1/24/22
https://finance.yahoo.com/news/inflation-is-really-hurting-arizona-families-senator-kelly-d-says-153212019.html

Update - it closed today as of 4:05 PM ET:
S&P 500 (GSPC): +12.18 (+0.28%) to 4,410.12 (8.1% below its Jan 3 all time closing high)

Dow (DJI): +99.13 (+0.29%) to 34,364.50

Nasdaq (IXIC): +86.21 (+0.63%) to 13,855.13

Crude (CLF): -$1.36 (-1.60%) to $83.78 a barrel

Gold (GCF): +$9.70 (+0.53%) to $1,841.50 per ounce

10-year Treasury (TNX): -1.2 bps to yield 1.7350%

The power of not constantly watching it, but getting a good nap instead.

From the A.P.: "The S&P 500 had been down as much as 4% Monday. The index has recovered from an intraday loss that big only three times in the past."

4 more trading days left this week.

[IronLionZion]

1. Biden is killing the economy

Nah, this is the Fed controlling inflation plus Russia's impending invasion of Ukraine. For folks with extra money, it could be a good time to buy soon.

[captain queeg]

3. You beat me to that comment. First thing I thought of.

Anything that goes wrong is his fault. Never give him credit for any accomplishments. It’s so knee jerk it would be funny if so many Americans didn’t lap up this RW crap.

[MichMan]

5. For those of us who are retired, there is going to be a lot of angst

People don't get to vote for the Federal Reserve chairman

[IronLionZion]

7. The Fed claims it will be over quick

like ripping off the band aid of inflation. The stock market has been sky high up through last month.

[MichMan]

12. Didn't they say last summer that inflation was only "transitory" ?

[RandiFan1290]

23. You were bragging about trump's market numbers

while they printed 20 trillion to prop him up.

What are you whining about now?

[eppur_se_muova]

15. And gold is up $8 by noon today.

I'm guessing war jitters are the main cause.

[Jose Garcia]

16. Regardless of whose fault it is, voters tend to blame the guy in the White House when the economy

isn't doing well or when they perceive that it isn't doing well.

[bucolic_frolic]

2. No buying interest until the bottom.

This is grossly overdone, it's really more an interest rate tantrum. Look for the Fed to comply with announcement of 2 or 3 hikes this year instead of 4. Powell won't end the party, he's by profession a trader.

That being said, I follow 3 market YouTube guys, mostly. One hinted at a top last August in the January time frame of DOW 36000, with a blowoff in January to 39000. Not bad. Somewhere, and it wasn't this guy, these was a call for DOW 17400 soon. I think I know who spilled the beans, but don't recall exactly so don't want to reattribute. Since it wasn't my regular crew I'm not as familiar with his normal reasoning.

And tech earnings and forecasts will be brutal due to higher interest rates ahead. AMD was about 162 in early December, clocking in around 110 today.

[Fiendish Thingy]

4. If inflation is really hurting families, then upcoming interest hikes should be welcomed

Interest hikes have been telegraphed by the fed for at least 6 months. The market is experiencing an expected correction after a year of substantial growth.

[BumRushDaShow]

6. It was all overdue for a correction

https://www.cnbc.com/2021/12/28/stock-market-news-futures-open-to-close.html

[Dawson Leery]

8. The market has know for a year that rate hikes were coming.

The market can't handle a point or two?

[Tomconroy]

9. It was nice being rich for a little while there.

[The Mouth]

18. Hey, if you worry about inflation *or* the stock market

someone will be along shortly to accuse you of attacking President Biden.

Anything other than 'It's all peachy, everything is under control' is unacceptable.


Simple fact: every President gets credit for a good economy and blame for a bad one, regardless of what they do or don't do, the only people who don't understand this are rabid partisans (of one side or the other).

[Mawspam2]

10. The Fed hiking interest rates is not the problem.

Cutting off the sugar that was QE juicing the markets is like Mark McGuire quiting steroids. Have you seen that guy lately?

[Crowman2009]

11. Thank gawd I shifted to the more stable money market & govt. bond funds in my 401(k) last week.

Plust I hate to brag, but I think everyone needs to consider purchasing some "I" series US Savings bonds right now since they are at a 7.12% interest rate.

[onenote]

22. Info on Series I Savings Bonds

https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm

[Crowman2009]

13. I keep wondering when the CD rates are gonna go up?

I'm starting to see some 5+ year credit union CDs go into the +1% territory, my credit union hasn't budged yet. But it sure as hell is far superior to bank CDs.

[progree]

17. Just looking at Trustone credit union vs. US Bank vs. Vanguard.com

.............. 4year 5 year
Trustone 1.00% 1.15%
US Bank 0.50% 0.75%
Vanguard 1.45% 1.75%

The Vanguard ones are "brokered CD's" which I don't fully understand

Am surprised to see the Vanguard rates -- about 3 weeks ago, while the Trustone was still 1.00% for 4 years, the Vanguard was 0.90% for the same term.

(Trustone is a 23-branch IIRC Minnesota-Wisconsin credit union)

[SouthernDem4ever]

21. If savings rates increase, it will only be for a little while and probably very little growth

The robber barons have turned our savings and retirement from a controllable interest on your money to an out of control casino known as the stock market. Don't look for much help.

[peppertree]

14. Wall Street is clearly trying to slow the economy ahead of the mid-terms

We should expect more of this - off and on - as the year progresses.

[Alexander Of Assyria]

19. This the time in history when the world decides to abandon the greenback as reserve currency?

If the worlds artificially supported peg is plunging relative to purchasing power, then Americans got a massive problem…no more just print more money to solve every problem.

Imagine if every country had a Fed that could just paste and copy unlimited money, legal tender everywhere?

When republicans hold hostage payment of interest on the worlds most massive debt, artificial as it is, it threatens the worlds monetary system.

[SWBTATTReg]

20. Markets can't keep going up forever. A correction has been due for some time.

[IronLionZion]

24. Not today though

Dow finished 100 points up today. That was wild.

[Marthe48]

25. As of 5:14 PM est, all are back in positive territory

https://www.cnn.com/2022/01/24/investing/dow-stock-market-today/index.html

DJIA is at 34,384.50, up 99.13 pts
S&P is at 4410.13 up 12.19
NASDAQ is at 13,855.13 up 86.21

No one mentions where the Dow is, just if it closed up or down. 34,384 is remarkable. Unless it was 36,000 last month

And btw, the ultra rich can keep screwing around trying to make the U.S.A. an oligarchy, or they can support our country against putin and russia. If they keep trying to destroy our country, they are going to lose their economy. Blood and guts war does that.