Fourth Down Day in a Row

A rough day for the markets is on the books. The S&P 500 lost ground for the fourth day in a row. At its low, the index was off by 2.72%. Fortunately, we made a good deal of that back by the close. For the day, the S&P 500 lost “just” 1.16%.

The S&P 500 isn’t far from being down 10% from its high from earlier this month. That’s the official definition of a correction.

Even though the market was down, value stocks were down more than growth. Generally, value stocks don’t fall as much as growth, nor do they rally as strongly. Today was an exception. For the day, the S&P 500 Growth lost -0.73% while Value lost -2.43%. Bank stocks were the culprit. The entire financial sector got hit hard.

The big divide today was between cyclical and defensive stocks. Cyclical stocks were down the most. By this, I mean sectors like industrials, energy, financials and materials. From today’s action, I assume the market has raised its outlook for longer lockdowns.

Posted by on September 21st, 2020 at 4:19 pm


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