The Dow is heading for its worst week in over four months
This week was packed with not-so-sunny news, although a ray of hope shone through on Monday as the S&P 500 and Nasdaq both hit record highs. Meanwhile, the Dow made a small loss as investors held their breath for two days Federal Reserve political meeting. That concern carried over to the next session, with all three major indices falling as the Nasdaq slumped for three days Winning streak.
Investor worries, however, were not in vain when the Federal Reserve’s Open Markets Committee (FOMC) signaled on Wednesday interest could rise earlier than expected and cause stocks to decline. On Thursday, the blue chip index fell after the publication of a worse-than-expected weekly newspaper. even deeper Unemployment claims Data. Although Great technology jumped towards the end of the session, propelling the Nasdaq to victory, the Dow recording its fourth straight loss. On Friday afternoon, the Dow lost nearly 500 points and stepped for its worst week in more than four months after further interest rate news signaled that rate hikes could become even tighter. In response, all three major benchmarks posted significant weekly losses.
Options traders get speculative
Options traders have been eager to speculate this week, with plenty of action from bulls and bears. In the midst of the Meme share Corsair Gaming (CRSR) caught the attention of investors. Nucor (NUE), meanwhile, attracted bears despite receiving a bull notice from Morgan Stanley. Put traders have also blown up Lennar (LEN) even after reporting a second quarter Make a profit. Finally the streaming name FuboTV (FUBO) was silent for most of the month, though that didn’t stop the option bulls from tuning in.
Checking in pharmaceutical stocks
A number of pharmaceutical stocks made headlines this week. once Reddit darling, Orphazyme (ORPH) was hit after the Food and Drug Administration (FDA) rejected the company’s experimental drug candidate for genetic disorders. Sage Therapeutics (SAGE), which is closely associated with Biogen (BIIB), was also shaken after seeing dismal late-phase study results for its Depression medication. Meanwhile, Covid-19 vaccines were also in focus. Ocugen (OCGN) suggested a Manufacturing partnership Deal with Jubilant Hollister Bull even though his vaccine candidate is not yet approved. Also, the stock of CureVac (CVAC) collapsed after the vaccine was considered only 47% effective in a clinical study.
A period of low volatility could be imminent
The earnings reports will continue to leak next week, with CarMax (KMX), Darden Restaurants (DRI), FedEx (FDX) and Nike (NKE) all reporting. However, investors can focus more on it FOMC updates, given the latest Fed news. In the meantime, see why Rocky Whites, Schaeffer’s senior quantitative analyst, spent a period of low volatility can be ahead. Traders should also look at what was expected June expiry week.