By Kuldip K. Ambastha
In this past trading week, the technology-heavy NASDAQ Composite Index (^IXIC) posted negative daily returns on all four consecutive trading days. (Monday, January 17, 2022 was not a trading day, due to this day being Martin Luther King Jr. Day.) The NASDAQ Composite Index entered into correction territory, with a correction defined as being when an index ends up closing 10% or more below the last record closing level. Friday, November 19, 2021 was when the NASDAQ Composite Index was at the past record high closing level. On Wednesday, January 19, 2022, the NASDAQ Composite Index dropped into correction territory, and after that two more negative daily returns were seen to close out the trading week. At the moment, investors are expecting that interest rates in the USA and elsewhere will be increasing soon. Growth stocks generally and technology stocks particularly have been hit hard because of this expectation. Expect significant volatility going forward.
Keywords – NASDAQ Composite Index, NASDAQ Composite, NASDAQ, ^IXIC, IXIC, technology, tech, growth, correction, interest rates, volatility.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in ^IXIC, since it is not possible to directly invest into an index. Furthermore, the principals and clients of Ambastha Financial LLC have no positions in index replication products related to ^IXIC.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.
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