The Dow Jones Industrial Average recouped some losses but still closed sharply lower on Friday, after a week of heavy selling dropped the venerable index to its lowest level of 2022.
Dow Jones, Nasdaq Extend Weekly Losses
The Dow closed down 1.6%, after being down as much as 2.7% earlier in the session. The S&P 500 shed 1.7% while the tech-heavy Nasdaq fared the worst among the big three, losing 1.8%. The Russell 2000 continued its downside leadership, dropping another 2.5%.
Volume was higher by 26% on the NYSE but just 4% on the Nasdaq, compared to the close on Thursday.
This week's Fed decision to raise interest rates by 75 basis points for the third time in a row has obliterated the last vestige of bullish sentiment, dropping indexes into June lows. The Dow Jones undercut this level overnight and failed to recover during the session. S&P 500 and Nasdaq bounced within a few bucks of their lows right at the closing bell.
Meanwhile, Wall Street's "fear gauge" surged, lifting the CBOE Volatility Index or VIX, above 30.
The benchmark S&P 500 index is down roughly 4.7% this week while the Nasdaq has lost 5.1%. The Dow Jones is down about 4% for the week.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 29592.85 | -483.83 | -1.61 |
| S&P 500 | (0S&P5) | 3693.49 | -64.50 | -1.72 |
| Nasdaq | (0NDQC ) | 10867.93 | -198.88 | -1.80 |
| Russell 2000 | 167.32 | -4.07 | -2.37 | |
| IBD 50 | 24.06 | -1.37 | -5.39 | |
Last Update: 4:14 PM ET 9/23/2022 |
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West Texas intermediate crude oil futures slumped, falling 5.3% to $79.03 per barrel and undercutting $80 per barrel for the first time since January.
The yield on the 10-year Treasury note held near 3.7%. The benchmark spiked earlier this week and has held near multi-year highs.
Looking at the 11 S&P 500 sectors, energy stocks traded the worst by far, with the Energy Select Sector SPDR down 6.8% and over 10% for the week.
Consumer discretionary stocks also fared poorly. Defensive sectors that include health care and utilities were down the least on Friday.
As for IBD's industry groups, all of the 197 sectors traded lower, except for newspaper media. Oil and gas-related groups flooded the downside with heavy selling.
Outside The Dow Jones: IBD 50 Fund At Six-Year Low
The growth-focused Innovator IBD 50 ETF lost 5.1% in heavy selling and is down over 10% this week. The fund has undercut the low of the 2020 bear market and is now at its lowest level since December 2016.
All 50 components traded lower on Friday, with defensive plays faring the best.
Cal-Maine Foods lost around 0.1%, after paring earlier losses, but remains up over 5% for the week. The stock is trading near the upper edge of a 5% buy zone from a 57.85 cup-with-handle entry.
Health care stocks that include Cross Country Healthcare and UnitedHealth Group were among the least tarnished on Friday, each falling less than 1%. CCRN stock is nearing a test of the 10-week line while UNH stock has already broken below this level of support and is nearing its 40-week line.
Oil stocks are feeling the effects of a stronger U.S. dollar and increased fears of a recession. As a result, it isn't surprising that IBD 50 energy plays led the downside, with Ovintiv, Talos Energy, SM Energy and Comstock Resources all posting heavy losses.
Comstock Resources lost an astounding 10.5%. The stock has undercut support at its 10-week line as well this week.
