Friends
Well, that was ugly. The Dow, the S&P 500 and the Nasdaq all coughed up sizable gains in today’s trading session leaving all three in negative territory at the close. It had been some days, but buyers finally appeared this morning only to have their hat handed to them by the close of trading. Other than a “dead cat bounce” this morning’s enthusiasm from the bulls appeared without much of a narrative to back it up.
Anyway, by the close the Dow Jones Industrial was down 313 points to finish the day at 34,715. The S&P 500 was down 50 points to close at 4,482. The Nasdaq Composite Index was down 186 points to close at 14,154. Gold was down $4 to trade at $1,839 per ounce, while oil was down $.67 to trade at $86.29 per barrel WTI.
Despite a pretty darn good start to earnings season, sentiment is decidedly negative at the moment. We’ve pointed out the headwinds that the markets are facing here at the beginning of 2022, so we are not real surprised that a bit of a reset is occurring, and perhaps this was even necessary to take some of the froth off stocks and bonds. Over a longer timeframe, moments like this are rather insignificant, but they sure aren’t fun when you’re in the middle of them. That’s ok, markets are going to do what markets are going to do. We haven’t had a serious downturn since early 2020, so we were due, but the reason we have been warning of a more volatile year is because of the change in conditions markets are having to deal with. Stay tuned, we’ll continue to help navigate our way through the headwinds ahead.
Have a nice evening everyone.
