Stocks fall as volatility hits Wall Street; oil drops

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Stocks fell in morning trading Wednesday as Wall Street undergoes a bout of volatility, driven in part by big swings in technology companies.

The S&P 500 fell 0.8% as of 11:26 a.m. Eastern after falling 1% earlier. Roughly 85% of stocks within the benchmark index fell and it has alternated between gains and losses of more than 1% the past four days.A measure of small-company stocks that helps gauge confidence in economic growth fell more than the major indexes. The Russell 2000 fell 1.6%.

The volatility in the market comes as investors try to gauge the economy's path forward amid rising inflation and the ongoing impact from the virus pandemic. Bond yields have remained relatively stable after a sharp jump in late September that signaled concern that high inflation could linger longer than economists and investors had initially anticipated.

Energy prices are retreating after a strong rally that contributed to inflation fears. U.S. crude oil fell 1.8% and natural gas fell 7.4%. The drop weighed on energy companies. Exxon Mobil fell 2.6%. Investors will get a closer look at how companies fared in the third quarter when companies release their quarterly financial results in the coming weeks. Wall Street is expecting solid profit growth of 27% for S&P 500 companies, but will also be listening for commentary on how supply chain problems and higher costs are crimping operations.

 

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Brief pause on it's way to $90-100 oil.

Spy is up 0.3% and the vix is turning red. Swing and a Miss

Well the last 12 months have been a good ride. Hope this sudden drop quickly corrects itself.

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