US stocks fell on Monday following the S&P500’s worst week since March 2020, as investors await more corporate earnings results and a key policy decision from the Federal Reserve.
The Dow Jones Industrial Average lost about 1,000 points, or 2.9%, falling for the seventh day in a row. The S&P 500 lost 3.6%. The benchmark index is down more than 10% from its intraday high. The Nasdaq Composite fell 4.5%, falling deeper into correction territory.
Monday’s market action followed a brutal week on Wall Street amid mixed corporate earnings and concerns about rising interest rates.
Monday’s pullback sent the S&P500 down more than 11% this month, on track for its worst monthly decline since March 2020 and its worst January performance ever. The Dow was also headed for its biggest one-month loss since March 2020, falling more than 8%. Meanwhile, the Nasdaq is down about 16% in January and is on track for its worst month since October 2008, when it plunged 17.7%.
The CBOE Volatility Index (VIX), known on Wall Street as the market’s “fear gauge,” hit its highest level since November 2020, breaking above the 38 level.
The fourth quarter earnings season has been mixed. While more than 74% of the S&P 500 companies that reported results beat Wall Street estimates, a couple of key companies defrauded investors last week, including Goldman Sachs and Netflix.
“What had initially been a decline fueled by the withdrawal of stimulus morphed last week to include earnings jitters,” Adam Crisafulli, founder of Vital Knowledge, said in a note. “Investors are therefore now concerned not only about the multiple placed on earnings, but also about the EPS (earnings per share) forecasts themselves.”
Investors are anticipating a slew of high-risk earnings reports from large-cap tech companies this week. Microsoft fell 5%, Apple lost 3.4% and Tesla fell 7.5% before the quarterly reports.
This article was originally published in English by Hannah Miao Y Yun Li for our sister network CNBC.com. For more from CNBC go here.
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