Good morning! It's Kristin with your daily morning digest.
U.S. equities continue to fall today after last week's sell-offs slammed tech stocks, cryptocurrencies, and investor portfolios broadly. Though markets rallied on Friday, the Dow, S&P 500, and Nasdaq still fell over 2% for the week, on worries about the Federal Reserve's ability to fight inflation while also avoiding an economic slowdown that turns into a recession.
Amid the market volatility and following the collapse of stablecoin TerraUSD and its sister coin Luna, the cryptocurrency market has also taken a hit, wiping out some $1 trillion of value. The cost of Bitcoin—long viewed as one of the more "stable" coins—fell below $30,000, while the price of Ether is just barely over $2,000.
Investors will be on the lookout for more earnings reports this week from major retail companies like Target, Walmart, Home Depot, and others. The earnings could provide a temporary boost to those stocks if they are strong, or provide more volatility depending on the guidance the market receives on the retail sales report due from the Commerce Department tomorrow—a signal of the strength or weakness of the American economy.
But has the market bottomed out—are the losses over, or will markets sink even further? No one can really say for sure, but there are still buying opportunities for investors who want to take advantage of market declines on stocks they have long-term faith in, or to "buy the dip." And for those of you with retirement portfolios, this remains a good time to consider if you should make some reallocations, or if you are approaching retirement age, should you mitigate the risks that the market volatility presents.
- Kristin
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