S&P 500 declines for five straight days, marking its worst streak since October as concerns over inflation persist
The S&P 500 continued its downward trend for a fifth consecutive day on Thursday, marking its longest losing streak since last October, as CNBC reported.
The broad index decreased by 0.22 percent, closing at 5,011.12. Meanwhile, the Nasdaq Composite also fell by 0.52 percent to 15,601.50. In contrast, the Dow Jones Industrial Average saw a marginal increase of 0.06 percent, adding 22.07 points to close at 37,775.38.
Despite daily rallies, the S&P 500 has retreated each day this week, culminating in significant weekly losses.
Quincy Krosby, chief global strategist at LPL Financial, noted, “This has been one of the most widely advertised pullbacks that we’ve had.” He emphasized the market's focus on potential further declines.
The ongoing pullback is attributed to growing concerns about inflation and the Federal Reserve's monetary policy, contributing to a challenging second quarter on Wall Street.
Chris Verrone, head of Technical and Macro Research at Strategas, highlighted the market's response to these economic pressures, mentioning, “Yesterday’s pop in put/call ratios + the recent increase in 'short' S&P ETF volumes have caught our eye as price action begins to affect behavior.”
On the earnings front, more than 12 percent of S&P 500 companies have reported this season, with 73 percent surpassing Wall Street's expectations, according to FactSet.
Investors are also observing shifts in market leadership, with utilities gaining despite rising rates. Verrone pointed out, "The more important question on our mind is what character does leadership assume on any bounce and whether the pro-cyclical tone that has been so dominant for much of the last 6 months can resume?"
In individual stock news, United Airlines was highlighted as a potential “safe haven,” with Morgan Stanley upgrading its outlook and setting a price target indicating a 64 percent upside.
On the downside, eight stocks in the S&P 500 reached new 52-week lows, highlighting the market's broader challenges.
This week's stock movements reflect significant volatility and an investor focus sharpened by macroeconomic uncertainties and specific sector movements.
