As we head into Friday afternoon trading and the last trading day of October, the stock market is headed for its worst week since March of this year. Why? There are a few reasons, it’s been a difficult week in which coronavirus cases are on the rise both here in the U.S. and Europe. U.S. fiscal stimulus talks broke down in Washington D.C. and traders are bracing for volatile swings during next week’s election. How long do you think this volatility will last?
On a weekly level, all three indexes are having their worst week in 7 months. The S&P 500 will post a weekly loss of -6%, the DOW’s loss stands around -7%, and the NASDAQ will post a loss of around -5%.
I had mentioned before that September was a month to forget, and it looked like the market was going to shrug that monthly loss off by mid-October, but things have taken a dramatic turn. All three indexes will post monthly losses marking back to back monthly losses for the first time since March of this year. The losses for the S&P 500, DOW, and NASDAQ stand at -3%, -5% and -2.5% respectively.
The U.S. dollar sit’s relatively unchanged for the month, trying to post back to back monthly gains in the face or overall market pressure. Joining the positive month party is Bitcoin, which has had an incredible jump of +25% on the month and is now trading above the 13,500 level.
Gold and crude oil have had a rough month, with oil losing -12% on the month, trading right at the 35 dollar level. Gold’s loss is mild compared to oil but still stands just shy of -1%, standing at roughly -.9%.
Key Levels To Watch Next Week: