Stocks Fall After Giving Up Early Gains

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Stocks gave up early gains, with the Dow industrials closing down more than 300 points in its fifth straight losing session

U.S. stocks weakened on Thursday afternoon, giving up the morning’s gains and showing that investors are still concerned about the prospects of tightening monetary policy and slowing growth.late tech selloff dragged down indexes

The choppy trading shows investors are trying to gauge how far this selloff will go. On Wednesday, the ragged, weekslong selloff pushed the Nasdaq down more than 10% below its record close, putting it in correction territory. Those kinds of plateaus usually bring in bargain hunters, but on its own is no indication a selloff is over, observers say.

Faced with the prospect of multiple interest-rate rises, cooling growth and inflation at multidecade highs, investors have been reassessing the pandemic-era playbook that focused on outsize gains for growth stocks, such as in tech. In recent sessions, investors have rotated into sectors expected to perform better in the coming year, such as financials and energy.

“I don’t see a whole lot in the market that is really alarming me. There is no one out there saying ‘run for the hills,’ but there are those saying they are going to take off risk and reposition to other areas of the market,” said Kara Murphy, chief investment officer of Kestra Holdings.The day brought a spate of economics reports. Weekly jobless claims jumped to 286,000 from 231,000 as businesses contend with Omicron-related disruptions. Existing-home sales in December fell 7.

 

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I want to tell you that the stock market has been in sell-off losing tradings, and they are all now in correction territory, one more losing trading day and then they are going into bear market and would go into recession, before the stock market recovers for real...

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