Stock Market

Stock Market Suffers Worst Week Since 2020. Here’s What Comes Next.

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The decline has been painful for investors who have been trained to buy on the dips.


Michael Nagle/Bloomberg

A bad start to 2022 just got a whole lot worse.

The


Dow Jones Industrial Average

declined 1646.44 points, or 4.6%, this past week. That looked stellar next to the


S&P 500,

which fell 5.7%, and the


Nasdaq Composite,

which dropped 7.6% and is now down 14% from its all-time high, hit back in November. All three suffered their worst weeks since 2020.

The drops make a strange kind of sense. Last year’s gains were fueled by a combination of

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Stock Markets Off to Worst Start Since 2016 as Fed Fights Inflation

After falling for a fourth day in a row on Friday, the stock market suffered its worst week in nearly two years, and so far in January the S&P 500 is off to its worst start since 2016. Technology stocks have been hit especially hard, with the Nasdaq Composite Index dropping more than 10 percent from its most recent high, which qualifies as a correction in Wall Street talk.

That’s not all. The bond market is also in disarray, with rates rising sharply and bond prices, which move in the opposite direction, falling. Inflation is red hot, and supply chain

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One day after Trump said Nancy Pelosi should be banned from stock trading, she said she’s open to it

Nancy Pelosi said on Thursday that she would consider proposals to ban stock trading by members of Congress, reversing the stance she took on the issue in December

The remarks also happened to come one day after former President Donald Trump advocated a ban on stock trading—for Pelosi.

“It’s not right. It’s not appropriate,” Trump told far-right news outlet Breitbart on Wednesday. “She should not be allowed to do that with the stocks…It’s not fair to the rest of this country,” he said.

Speaker Pelosi does not trade stocks herself, but many aspiring traders watch and copy the investments

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Top hedge fund manager warns that market ‘superbubble’ will burst

Jeremy Grantham, co-founder and chief investment strategist of Grantham, Mayo, & van Otterloo (GMO) said in a report called “Let the Wild Rumpus Begin” that stocks are now in the midst of a “superbubble,” that it won’t end well.

Grantham, who has been running the firm’s investments since it was started in 1977, was similarly bearish at market tops in 2000, and during the Great Financial Crisis of 2008.

“Good luck! We’ll all need it,” said Grantham, whose firm manages about $65 billion in assets.

He noted that US stocks have experienced two such “superbubbles” before: 1929, a market fall
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Is the market crashing? No. Here’s what’s happening to stocks, bonds as the Fed aims to end the days of easy money, analysts say

As the stock market has convulsed lower and yields for bonds have surged in recent weeks, culminating in a so-called correction for the Nasdaq Composite Index, average Americans are wondering what’s amiss with Wall Street.

Increasingly, Google searches have been focused on the state of the market (and the economy), and for a good reason.

The Dow Jones Industrial Average
DJIA,
-1.30%
posted its worst weekly loss since October of 2020 and the S&P 500
SPX,
-1.89%
and Nasdaq Composite
COMP,
-2.72%
logged their worst weekly percentage drops since March 20, 2020, according to Dow Jones Market Data shows.

Read

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Stock Market Normality Returns, and It Hurts

In one way this year so far looks very like last year: the benchmark 10-year Treasury yield has risen by almost exactly the same amount, a little over 0.2 percentage points. In most ways, though, it looks completely different: rather than rewarding rampant speculation, the stock market has been punishing those who bet on fashionable stocks.

Here are three ways the market seems to be returning to normal after its pandemic unruliness, plus one possible change in its long-term pattern.

Share prices are irrelevant again. The start of January last year was unusual for the rush into stocks with a

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Bill banning stock trading by lawmakers more ‘fair for everyday people’: Retail trader

Momentum is growing to restrict stock trading by members of Congress and their spouses, as retail traders have been tracking politician trades and their performance. 

On Wednesday, Senators Jon Ossoff (D-GA) and Mark Kelly (D-AZ) introduced a bill, barring members of Congress and their immediate families from trading while in office. On the same day, Senator Sen. Josh Hawley (R-MO) announced he is introducing a similar measure. 

“It’s awesome to see Republicans and Democrats on both sides starting to to push laws and make this more fair for everyday people,” Christopher Josephs, cofounder of Iris, a social investing app

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Dow Jones Futures Signal Market Sell-Off To Continue; JPMorgan, Wells Fargo Earnings Top

Dow Jones futures fell early Friday, along with S&P 500 futures and Nasdaq futures, even with JPMorgan, Wells Fargo and Citigroup earnings topping views. The stock market rally had a rough Thursday, as highly valued growth stocks such as Tesla, Roblox and ServiceNow led the retreat.




X



The Nasdaq tumbled to its worst close since October while the S&P 500 slid below key support.

Taiwan Semiconductor (TSM) broke out Thursday on strong earnings and guidance. TSM stock gapped up 5.3% to 139.19, clearing an 11-month cup-with-handle base with a 135.60 buy point, according to MarketSmith analysis. But shares

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Business News for Jan. 13, 2022

Navient, once one of the country’s largest student loan servicing companies, reached a $1.85 billion deal with 39 states to settle claims that it had made predatory loans that saddled borrowers with crushing debts they were highly unlikely to repay.

The deal, announced Thursday, requires Navient to cancel $1.7 billion in delinquent private student loan debts for nearly 66,000 borrowers and pay $95 million in restitution. The private loans were crucial to Navient’s ability to make a large volume of lucrative federal loans, prosecutors said.

“Navient repeatedly and deliberately put profits ahead of its borrowers — it engaged in deceptive … Read More

Worried about a bubble? Why you should overweight U.S. equities this year, according to Goldman Sachs

Investors should favor U.S. equities this year even as valuations are historically high and the Federal Reserve moves toward tightening its monetary policy, according to the investment strategy group at Goldman Sachs.

“Using valuation as a signal to get out of equities is actually not effective,” said Sharmin Mossavar-Rahmani, chief investment officer for Goldman’s consumer and wealth-management division, during a media briefing Thursday, on the group’s 2022 outlook. Investors risk missing out on big returns by getting out of the market due to concerns over undoubtedly high valuations, she said.

Consider the S&P 500 index, which measures the performance

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