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Stock Market
19 Jan 2022
Wall Street Plummeted as Yields Spike, Financials Fall after Goldman Miss
The Index Today
On Tuesday, Wall Street's main indexes fell sharply as weak results from Goldman Sachs missed quarterly profit expectations amid weak trading activity as U.S. Treasury yields rose to milestones.
The NASDAQ dropped most among major indexes on Tuesday and now has fallen about 9.7% from its Nov. 19 record closing high, close to confirming a 10% correction for the first time since early 2021. The tech-heavy index also closed below its 200-day moving average, a key technical support level, for the first time since April 2020. Goldman Sachs shares tumbled 7% after the investment bank missed quarterly profit expectations amid weak trading activity. The financial sector, which has been one of the better-performing groups in 2022, dropped 2.3%, according to the Reuters report.
Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana said, “The financials crumbling a little bit under the weight of less-than-impressive earnings quarters is probably the biggest factor today.” “When you have taken out potentially one of the areas that actually was working here, that kind of casts a pall on the market,” he added.
Benchmark U.S. Treasury yields jumped to two-year highs and two-year yields breached 1% as traders prepared for the Federal Reserve to be more aggressive in tackling unabated inflation.
©Photo: traderammo
