On Monday,the Nasdaq Composite (COMP) kicked off the week with its greatest three-day fall since November 2011. Fast forward to Thursday and the index continued declining as it fell 129.79 points (3.1%) to close at 4,054.11. This represented its greatest one-day decline since November 2011 as there were large biotech and Internet stock falls.
The Nasdaq Biotech index (NBI)?fell 5.64% while the iShares Nasdaq Biotechnology ETF(?IBB)?also declined by 5.6%.
As for the S&P 500?(SPX), it declined by?39.10 points ( 2.1%) to end at 1,833.08, which is under its 50-day moving average and nearing the 100-day moving average. The?Dow Jones Industrial Average?(DJIA) didn’t fare much better as it dropped 266.96 points (1.6%), to 16,170.228–a single-day worst percentage drop in two-plus months.?
Jerry Webman, chief economist at Oppenheimer Funds, said via CNBC, “The market is coming to its senses in some of the high-flying tech names; it looked like there were some pretty hefty amounts being paid for the prospect of eventual earnings. Any of us in the market more than 15 years feels the hot breath on the backs of our necks when we see such high prices being paid for tech stocks.”
He added, “One of the interesting ironies is when you see a shift towards stocks with pretty low prices and away from momentum that tends to happen when the underlying economy is still growing.”?
Meanwhile, the VIX took a turn north and closed at 15.89, up 14.98%. On Tuesday, as the Nasdaq was tumbling, the fear index jumped 19%.?
Here’s a look at numbers to have a potential effect on Friday’s markets:
- Earnings include JP Morgan Chase, Wells Fargo and Fastenal
- 8:30 a.m.: PPI
- 9:55 a.m.: Consumer sentiment