The Nasdaq 100 led losses among major U.S. indexes dropping 2.6% today, as global stocks suffered arguably the worst week since March.
For the week the numbers were scarier than Halloween as tech stocks were routed with Twitter suffering its worst day since 2014 plunging 21% on weak user growth. Today’s drop erased almost $9 billion in market value but it is worth noting that TWTR is still up 88% since its March 18th low. Apple also fell 5.91% on Friday after reporting weaker than expected revenue in China.
This week the S&P 500 dropped 5.6%, the worst loss ever in the week prior to a presidential election. The Dow was down 6.5% on the week, while the NASDAQ lost 5.5%.
With such returns it is good to remember that Bulls & Bears can make money, anyone with a short bias this week is very likely to be having a Happy Halloween indeed.
Oil falls to a 5 month low.
Crude oil prices fell by 10% this week as WTI ended today’s trading session at $35.57 a barrel. The price erosion was due to economic concerns related to lockdowns in Europe and increases in production without visible demand. Libya is now producing close to 700,000 bpd and expects to be at 1 million bpd in a month’s time, while rig counts in the U.S. are inching back up. There is also concern that a Biden election victory might lead to reduction in sanctions on Iran and even more oil coming back into the market. This has brought about a return of the “lower for longer” expression as production looks to be outpacing demand at the moment.
Covid, Covid, Covid!
With the United States and Europe experiencing rising coronavirus cases there is uncertainty in the outlook for economies and markets after the U.S. election. No matter who wins between President Donald Trump and former Vice-President Joe Biden it will be some time before the global pandemic truly subsides. However, progress continues on vaccines and new therapeutics, and some countries have had success with public health measures. Taiwan announced on Friday that the country had gone 201 days without a locally transmitted case of Covid-19.
Quote of the day – “Wide diversification is only required when investors do not understand what they are doing.”Warren Buffett
TradeGateHub.com – #TradeWithCoach USA Political Update – for Oct. 30th
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Senior Market Analyst