Market Recap: Can the Stock Market Break Its Losing Streak?
Stock indices are mostly down as trading begins for Wednesday, and the FOMC and IMF meetings probably will not help.
Tuesday saw the stock market close down again, with the major indices pulling in low numbers in the midst of IMF and FOMC meetings.
Before trading begins on Wednesday, The Nasdaq Composite is looking low, with a drop of 0.12% compared to the previous day. This index has already been putting out low numbers this week and did so last week as well. Pharmaceutical companies with poor earnings reports and negative research news are pulling the Nasdaq Composite down, despite a few bright spots on the index.
The S&P 500 is low as well, with a drop of 0.21% from yesterday and a three-day losing streak. Maybe things will turn around for this index today with gains from some of the major tech stocks. Super Micro Computers is up 10.6%, and several medical/health stocks are up as well. That is not enough to balance out the many stocks that are down as a result of high inflation and a slow economy.
The Dow Jones closed with an increase of 0.17%, gaining 63 points for the day. It may not stay up as the market opens, though, and may struggle to post a positive total by the time trading ends on Wednesday. Notable stocks there include UnitedHealth Group, which posted a gain of 5.22% and Boeing, which is up 1.63%. The biggest drop on the Dow Jones Industrial Average was Johnson and Johnson, which posted a loss of 2.13% for the day.
Outlook for Wednesday and the Rest of the Week
We will continue to hear from FOMC chairmen and IMF officials as the week progresses. FOMC member Mester speaks later today and will likely address inflation, the economy, and interest rates. Similar issues will be covered by the IMF meetings as well, which could bring more bad news on inflation but also some ideas from financial experts on how to fix some of those issues.
We expect the market to move slowly and trend downward for now, as investors are hesitant to trade when inflation is rising. If some good news starts to come in, expect a quick turnaround from eager investors who want to see the market improve.
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