The stock market's 16% rally from the June lows has depended on investors' desire to pay more for future earnings as bond yields declined, Credit Suisse strategist Andrew Garthwaite said in a research bulletin from London Friday. Lea la cobertura del mercado de hoy en español aquí. Options expirations can add volatility to markets as some holders may be forced to move into their positions. In other news, about a $2 trillion notional value worth of options contracts expired on Friday.
The move seemed to dampen sentiment among meme stock traders who have bet big on the company in recent months. Meanwhile, Bed Bath & Beyond shares cratered more than 40% after Ryan Cohen dumped his entire stake in the retailer. "I wouldn't expect a complete reversal going back to the June lows or something like that, however, the choppiness we're seeing today and this week does reflect a lot of the bear case that's out there," said FBB Capital Partners' Mike Bailey. "I think seeing the market trade sideways or seeing a bit of a pause in that rally definitely makes sense based on some of the facts that we're seeing out there." Louis Federal Reserve President James Bullard indicated that the central bank would likely continue hiking rates in the near term, putting a damper on investors' hopes of a slowdown.ĭespite the week's moves, many investors and traders are holding out hope for a bounce back. The tech-heavy Nasdaq closed out the week down 2.62%.įriday's halt in Wall Street's summer rally came as minutes from the Federal Reserve's July meeting and comments from St. The Nasdaq Composite dropped 2.01% to settle at 12,705.22.įor the week, the S&P edged 1.21% lower, while the Dow slipped 0.16%. Stocks tumbled on Friday as Wall Street's summer rally faltered and rate hike fears resurfaced, leading the major averages to end the week on a sour note.