Saturday , October 23 2021

With the leading indices in freefall, the Wall Street rally seems close to the end – National


After nearly 10 years, the Wall Street rally seems to be ending.

Another day of heavy losses on Friday left the US market with its worst week in more than seven years. All major indices have lost 16 to 26 percent of their highs this summer and fall. Except huge gains over the next vacation, this will be the worst month of December for stocks since 1931.

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There was not a great shock that has lowered the actions. The US economy has been growing since 2009, and most experts believe it will continue to expand for the time being. But it is likely to happen at a slower pace.

As they look ahead, investors are finding more and more reasons to worry. The US is involved in a trade dispute with China for nine months. Economies in Europe and China are slowing. And rising interest rates in the US could further slow its economy.

Dysfunction in Washington is not helping in the situation, with another Trump government cabinet member announcing his resignation this week and the government late on Friday on the verge of a partial shutdown.

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Shares are now heading for their worst month since October 2008 when the market was being hit by the global financial crisis.

December is generally the strongest time of year for US stocks. Traders often talk about a "Santa Claus rally" that increases the year's gains as people adjust their portfolios in anticipation of next year.

But not this year.

No market sector has been spared. Large multinational corporations join the domestic minors in their losses. And big high-tech companies, once the best performing stocks in the market, are now leading the way down.

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The sheer popularity of technology during recent years of expansion has made it even more vulnerable as investors' minds sour. Amazon, Facebook, Apple, Netflix and Google's controlling company, Alphabet, saw their market values ​​drop by hundreds of billions of dollars.

"If you live on impulse, you die on impulse," said Sam Stovall, CFRA's chief investment strategist.

The compound Nasdaq, which contains a high concentration of technology stocks, sank nearly 22 percent since its record at the end of August. Several major technology companies, such as Facebook and Twitter, have also suffered as a result of scandals on issues such as data privacy and election interference, and traders fear the industry faces more government regulation that could increase costs and affect profits.

US top indices fell 7% this week and sank more than 12% in December.

WATCH: Week of Bruises on US Stock Markets

Investors around the world are increasingly pessimistic about the outlook for the global economy in the coming years. It is widely expected to slow down, but traders are worried that the cooling will be worse than previously believed.

After a strong gain on Friday, the S & P 500 index fell 50.80 points, or 2.1 percent, to 2,416.62. The S & P 500, benchmark for many index funds, fell 17.5 percent from the September high.

The Dow Jones Industrial Average sank 414.23 points, or 1.8%, to 22,445.37. The Nasdaq skidded 195.41 points, or 3%, to 6,332.99. The Russell 2000 stock index of smaller companies lost 33.92 points, or 2.6%, 1,292.09.

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European markets have risen slightly and Asian markets have been mixed.

Oil prices also dropped sharply in recent weeks, down 40 percent from the October high amid worries about oversupply in the market and the slowing economy.

On Friday, US oil prices fell 0.6 percent to $ 45.59 a barrel in New York. Brent crude, the standard for international oil prices, fell 1 percent to $ 53.82 a barrel in London.

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