Stocks snatch victory from the jaws of defeat (at least for the S&P and Dow).

  • S&P averts closing in bear market territory. The Nasdaq has a moral victory as it erased most of a -3.10% intraday decline.

The major US stock  indices  snatched victory from the jaws of defeat – at least for the Dow industrial average and S&P index. The NASDAQ index still closed negative on the day as did the Russell 2000. However, both indices had moral victories after erasing most of the intraday declines (the Nasdaq was down -3.10% at session lows).


  • The Dow industrial average was down -617.37 points or -1.98%
  • S&P index was down -90.29 points or -2.31%
  • NASDAQ index was down -352.81 points or -3.10%

At the end of the day:

  • Dow industrial average rose 7.45 points or 0.02% at 31260.57
  • S&P index rose 0.60 points or 0.02% at 3901.38
  • NASDAQ index fell -33.87 points or -0.30% at 11354.63
  • Russell 2000 fell -2.95 points or -0.17% at 1773.26

Fed’s Bullard speaking on FOXBusiness was anticipated by markets. Stocks were trading near low levels as he started to speak, with expectations he would be ultra hawkish.

Instead he maintained that he prefers 50 basis point hikes (and not 75 or 100 bps). He sees above trend growth going forward. He sees employment moving lower to perhaps less 3%, and does not see a recession in 2022 or 2023.

He DOES expect rates to rise to 3.5% by the end of the year which implies 50 basis point hikes at each Fed meeting until then. However, that is the cost of doing business to have his upbeat economic viewpoint.

Stocks started to bounce soon after he was done speaking.

The bad news for the indices is:

  • The Dow still closed lower for the 8th consecutive week which has not been done since 1923
  • The S&P and NASDAQ index also closed lower for the 7th consecutive week.

For the week:

  • Dow industrial average fell -2.9%
  • S&P fell -3.02%
  • NASDAQ index fell -3.28%

The last month of trading has seen:

  • Dow industrial average -10.15%
  • S&P index -11.18%
  • NASDAQ index -13.81%

Today the S&P index broke into bear market territory with the index falling -20.9% from its all-time high. However, the end of day rally has led to a close around -19% from that all-time high. Closing in bear market territory was averted.

The  NASDAQ  index reached a new year – and cycle – low and traded down -31.93% from its all-time high reached in November before rebounding.

The Dow industrial average also reached a new cycle low as it fell to -17.09% from its January all-time high before rebounding into the close.

Next week earnings will be highlighted by:

  • Zoom on Monday.
  • Toll Brothers and Best Buy on Tuesday.
  • Snowflake, Box, and Nvidia on Wednesday.
  • Dell, Macy’s, Costco on Thursday.


Go to top