Despite the gains recorded as recanted, the S&P 500 is still down more than 7.5% in the year-to-date period, as it is set to close this month as its absolute worst since March 2020.
Investors are decidedly shunning risky assets and putting funds into growth stocks ahead of the proposed market stabilization era.
There is widespread belief that the Fed will hike interest rates at its upcoming meeting, even as tech stocks underperformed last week.
Government bond yields remained high with the two-year treasury adding 1.04% and the 10-year note hitting a high of 1.87%.
The figures Netflix posted seemed to affect US stocks as index futures performance was unbalanced between the DIJA, Nasdaq Composite, and the S&P 500.
The growth of China’s Hang Seng Index was not replicated in the United States as all major indices gave up their gains to close Wednesday’s session in a bearish manner,
The UK’s current inflation rate surpassed the 5.2% expectation of economists, ahead of the BoE’s next meeting in February.
The sharp spike in the Treasury yield has put severe pressure on the market as Dow Jones tanked another 280 points in the early morning Tuesday trade.
A major menace that seems to be plaguing most countries at the moment is the inflationary surges, a move that is also billed to have a massive impact on the global stock outlook if not handled appropriately moving forward.
The fourth quarter and full-year growth record of the Chinese economy was the buy signal for many investors.
The economy is still reeling from the potential impact of inflation following the most recent Consumer Price Index (CPI) which topped 7% year-over-year.
The fact that the Nasdaq Composite is maintaining steady gains might imply that the index is on its way to making massive impressions this year.
According to the Evercore executive’s projections, the worst-case scenario in growth terms for the S&P 500 is 3,575 points this year.
In 2021, the S&P 500 gained more than 27% and the Dow rose by about 10%.
The S&P 500’s 70th record close of the year is now the second-highest ever for the index, pulling in gains for 28% of 2021.