Stock Market This Week (US): Why did Nasdaq crash 5% this week? Check out the key highlights
Stock Market This Week (US)
The broader equity market capped its fifth negative week in the last six weeks. The Dow was down 4%, S&P lost 4.65%, while NASDAQ was the worst hit with a 5.07% fall.
US stock market this week: Stocks movement this week
The US equity market started the week on a positive note on Monday ahead of the Fed's two-day policy meeting. All the major indices gained over half a percent. The yields pushed higher ahead of the Fed's likely decision to raise its benchmark rate.
On Tuesday, US stock crashed as investors braced for another large rate hike. The two-year yield jumped as high as 3.99%, the highest since 2007. The 10-year Treasury briefly topped 3.6%, the highest level since 2011.
After the Fed raised the interest rate by 75 basis points on Wednesday and forecasted more sizable rate hikes to tame surging inflation, the US stock market crashed, with all major indices falling more than 1.5%. The US 2-year treasury crossed the 4% mark.
The US stock market continued its downward trajectory on Thursday. Technology stocks were the worst hit stocks as NASDAQ tumbled 1.4%. Market observers also expect the European Central Bank to raise rates when it meets next month.
On Friday, US investors saw another day of a brutal selloff as surging interest rates and foreign currency turmoil heightened fears of a global recession. All major indices ended more than 1.5% lower. More than 90% of stocks in the S&P 500 finished Friday’s session with losses.
US stock market this week: Major events
Interest rate hike: The Federal Reserve announced it was raising its key rate by another 0.75 percentage points, lifting the target range to between 3% and 3.25%. Forecasts released by the Fed on Wednesday show policymakers expect it to reach 4.4% by the end of the year - and rise further in 2023, sharply higher than its prior forecasts.
Unemployment data: In the week ending September 17, the advance figure for seasonally adjusted initial claims was 213,000, an increase of 5,000 from the previous week's revised level. The previous week's level was revised down by 5,000 from 213,000 to 208,000.
Treasury yield: 2-year Treasury yield rose above 4% for the first time since 2007, while the 10-year yield hit an 11-year high. The two-year US Treasury note yield was above 4.10%, its highest level since October 2007, and the benchmark 10-year US Treasury note yield briefly touched 3.77%, its highest mark since November 2008.
Mortgage rates: Mortgage rates jumped more than a quarter point this week and remain at the highest level in 14 years, offering no relief to sidelined home buyers. The average rate on the 30-year fixed mortgage increased to 6.29% from 6.02% last week. Rates are more than 3 percentage points higher than at the start of the year.
How has the US market performed this week?
Most US stocks and indices made new lows this week. Dow was at a two-year low and closed below the 30,000 mark for the first time since Junee. NASDAQ was the worst hit, with over a 5% fall.
How have different indices performed this week in the US?
All major S&P 500 sectors closed out the week with losses, which led to the downside by energy and consumer discretionary. Consumer staples were the week’s best-performing sector, with the least fall of 2.15%.
How has gold performed this week?
December gold contracts closed 1.5% lower on Friday at $1655.60 the ounce after touching $1646.60 earlier in the session, the lowest since the first week of April 2020, three weeks into the Covid lockdown.
Which sector and company performed best this week?
The top-performing stocks this week are from the consumer staples sector and include companies like General Mills.