Every day, we get more and more worried about the stock market and our various positions. The major
stock indexes are selling off after recovering from heavy losses. The DOW and S&P indexes were at one point down over 2% and the NASDAQ composite dropped 3.05%. On Friday, only Bed Bath & Beyond was able to post profits.
There are two major reasons why this anxiety in the market is prevalent. There are heavy doubts on the
successful completion of trade deals with China as the CFO of the Chinese telecom giant, Huawei was
recently arrested in Canada at the request of US authorities. If the truce in tariffs ends, the global
economic growth will be affected negatively.
Another issue is the Fed and its stringent monetary policies. The lower figures with November job
growth seem to be good news for investors and they may hold off on the central bankers from pushing
their interest rates higher than normal. The Fed is still expected to raise rates this month but it may cut
down or eradicate rate hikes completely from next year.
The market is also volatile with the technology stock being the most affected today. The FANG stocks
(Facebook, Amazon, Netflix, and Google) reported sharp drops with Netflix being the most hit with a
The rest of the tech sector experience heavy losses also. NVIDIA Corp recorded a 6.75% drop, Adobe
Systems reported a 5.04% drop and salesforce recorded a 4.3% drop. So many other high growth stocks
were also heavily hit with medical device manufacturer Boston Scientific Corp which has been up 43%
this year being hit with a 3.51% drop. Biotech firm Alexion Pharmaceuticals also fell by 4.49%.
FedEx Corp also continued to drop on fears surrounding the slowing economy. It fell by 6.36% and is
now off over 20% since the middle of September. Other cyclical stocks like J.M Smucker Company, Tyson
Foods, Contras Corp also declined. Fashion companies Ralph Lauren, L Brands and Under Armor Inc. also
experienced sharp drops.
The big retailers were not left out as they also suffered heavy drops. Companies such as Costco, Dollar
Tree Inc. and Walmart were down by various percentages. Hospital operators Universal Health Services
recorded a steep 4.12% drop also. The only stock that seems to have survived this onslaught is the
retailer Bed Bath and Beyond which was up by 0.57%. It is however down 43% this year.