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The stock market is taking a beating on Thursday morning after Japan declared a state of emergency due to Covid-19, just days before the Summer Olympics begin.
S&P 500 Index
The price of futures has dropped by 1.2 percent, while
The Dow Jones Industrial Average is a stock market index that measures how well
The Dow Jones Industrial Average has down 446 points, or 1.3 percent, while the S&P 500 has plummeted 446 points, or 1.3 percent.
The Nasdaq Composite Index
The price of futures has dropped by 1.2 percent.
The stock market’s enormous comeback from its March 2020 low was premised on one thing: Covid’s defeat, and the economy returning to anything resembling normalcy. However, with the expansion of the Delta version and the introduction of additional lockdowns, that story is being seriously questioned. If Covid returns, not only has economic growth peaked, but it may also be slowing. “Global equity markets are getting battered this morning as stocks have started to drink the bond markets’ anxiety that reflation has peaked,” says Andrew Brenner of NatAlliance Securities. “Is this the beginning of the equities correction that we expected to begin in the middle of August?… We don’t believe so, but it’s a dreadful morning.” The stock market is falling in lockstep with the 10-year Treasury yield, which has dropped 0.048 percentage point to 1.273 percent this morning. How low can it go? “The 200-day moving average is at 1.23 percent, indicating that 10-year rates should hold off on additional declines,” writes Tom Digaloma of Seaport Global. Expect the stock market to continue to collapse until bond yields begin to rise. Here are some of the stocks that are moving in early Thursday trading:
Charles Schwab is a hedge fund manager.
(SCHW) has declined 4.6 percent since Goldman Sachs downgraded it from Conviction Buy to Neutral.
D.R. Horton is a fictional character created by D.R. Horton
(DHI) has down 2.7 percent since RBC Capital downgraded it to Sector Perform from Outperform.
Dish Network is a satellite television provider.
Despite HSBC’s upgrade to Hold from Reduce, (DISH) has dropped 2.2 percent.
Freeport-McMoRan
(FCX) has dropped 4.3 percent since Barclays downgraded it to Underweight from Equal Weight.
(OSTK) has risen 1.8 percent since being added to Needham’s conviction list and was launched at Buy. Ben Levisohn can be reached at ben.levisohn@barrons.com./n
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