Stocks are getting slammed.
On Thursday, the S&P 500 erased its gains for the year. With the Dow, it fell 1.4%, the worst drop in six weeks.
It also fell below its 200-day moving average, a move that some traders take as a bearish sign for stocks.
And on Friday morning, stocks were selling off again. If markets close lower, the S&P 500 would log its seventh down close of the past eight sessions.
“All of a sudden, the stock market is back into corrective mode,” writes Gluskin Sheff’s David Rosenberg in a note to clients on Friday.
He offered these ten reasons for why markets are taking:
- Oil prices are still going nowhere.
- Gold fell to a five-year low, and copper to a six-year low on Thursday — markets are getting worried about global growth and deflation again.
- The Fed is talking more bluntly about raising rates in December.
- Higher wages are cutting into profit margins.
- “Bellwethers” like Macy’s, Nordstrom, and Cisco are reporting weak earnings and guidance on revenues.
- Retailers are expecting soft consumer spending this holiday season, despite higher wages and savings from low gas prices.
- China continues to slow. Eurozone GDP grew only 0.3% quarter-on-quarter in Q3.
- High yield corporate bond yields are rising and spreads are widening, as concerns about energy-related defaults increase.
- Both Democrats and Republicans are hating on Wall Street more and more these days.
So there you have it.
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