“Market volatility intensifies as investors eagerly await the impact of economic stimulus measures, setting the stage for a rollercoaster ride in today’s stock market.”
The S&P 500 entered correction territory on Friday, falling 10% from its high close in July 2023. The benchmark index slipped 0.5% and hit its lowest level in five months. The Dow Jones Industrial Average also traded lower, down 0.9%, due to declines in JPMorgan Chase and Chevron. However, the Nasdaq Composite managed to hold 0.3% higher, thanks to strong performance from Amazon.
Amazon’s shares surged more than 8% after the e-commerce giant reported better-than-expected revenue and earnings in the third quarter. Other megacap stocks like Microsoft followed suit and traded higher. Despite this, all three major averages are on track for steep weekly losses, with the Dow and S&P 500 down 2% and 2.6%, respectively, and the Nasdaq falling 2.8%.
Analysts believe that the market’s current dips may not be long and sustained, as there is a lot of cash sitting on the sidelines. They also anticipate a growth surprise next year, as analysts are forecasting low sales and earnings growth over the next five years.
The Nasdaq entered correction territory this week after falling more than 10% from its closing high in July. Disappointing earnings from companies like Ford and Chevron have contributed to market pressures. Additionally, traders are keeping an eye on inflation data, with the core personal consumption expenditures reading for September matching economists’ estimates. This data will be considered ahead of the Federal Open Market Committee meeting next week, as PCE is the Federal Reserve’s preferred inflation gauge.