BREAKING: Stocks hit fresh session lows, with Dow Jones Industrial Average plunging more than 1000 points https://t.co/P75zYdX0YD pic.twitter.com/qFPSZXLy6R
— CNBC Now (@CNBCnow) January 24, 2022
During the last 5 trading days, DIJA has lost over 7%, S&P 500 has lost 9%, and NASDAQ has lost over 11.5%. pic.twitter.com/ZQgJtyFmAQ
— Nick Short (@PoliticalShort) January 24, 2022
Stock market doing its best impersonation of Biden’s approval rating pic.twitter.com/a5IuxaTZbR
— Mike Hahn 🚀 (@mikehahn_) January 24, 2022
The S&P 500 has dropped 11% — heading toward what would count as a correction — so far this year. That’s the most on record at this juncture, according to Bloomberg data that goes back over nine decades, though drawdowns have been faster in prior years before quick rebounds, most notably in 2009.
The downturn comes as traders brace for the Federal Reserve to tighten monetary policy and a surge in U.S. Treasury yields weighs on the outlook for stocks. A host of technical signals also suggest that more volatility may be coming up ahead.
“The Fed pulled the punchbowl, liquidity has evaporated, and the S&P and NDX broke below their 200dma for the first time since the Covid outbreak,” said Rich Ross, technical strategist at Evercore ISI.