The three major stock indexes fell for a second week in a row. For the week, the S&P 500 fell 1.6%, the Dow fell 1.9% and the Nasdaq fell 1.8%. Because of Russia's confrontation with the West over Ukraine and the prospect of rapid monetary tightening by the Federal Reserve.
Stocks were volatile as the market closed on Friday, with $2.2 trillion in options expiring on Friday adding to volatility. The S&P 500 turned gains at one point, but then resumed losses. At the same time, traders also trimmed risk positions ahead of the U.S. holiday on Monday. The Nasdaq Composite formed a “death cross,” a technical formation that has sometimes signaled further market weakness in the past.
Investment analyst Callie Cox wrote that fear could be a good development for the market, and when investors are nervous, they tend to accumulate cash and hedge their positions. The worst market storms usually happen when investors don't expect them. Right now, we're hedged and prepared for a hit, but the real damage may not be as bad as we think. When the news surface calms down, this is a good trigger for the market upside.
Meta (FB.US) fell out of the top 10 in terms of market capitalization, and Tesla (TSLA.US) ranks among the top 6 in global market capitalization. Shares of Meta platform Inc. (FB.US) have fallen out of the world's top 10 in market capitalization as they suffered their worst monthly decline on record. In addition, Tesla (TSLA.US) successfully replaced Meta with a market value of $906 billion, becoming the sixth-largest global market capitalization, behind Amazon (AMZN.US).
Q4 revenue and performance guidance fell short of market expectations. Roku's fourth-quarter revenue was $865 million, up 33% year over year; adjusted EPS was $0.17, beating analysts' expectations of $0.09. Roku expects Q1 2022 revenue to grow 25% year-on-year to $720 million, below analysts expectations of $748.5 million.
Intel (INTC.US) said: Revenue growth will accelerate in the next few years. Intel expects revenue growth of just under 2 percent this year and will accelerate in the coming years as CEO Pat Gelsinger works to transform the once-dominant chipmaker. Intel's 2022 EPS forecast of $3.50, excluding some items, is also slightly ahead of analysts' expectations of $3.44.
Buffett said on Thursday: Berkshire Hathaway(BRK.A.US) not much gain for buying Activision Blizzard (ATVI.US) stock that the recent investment in Activision Blizzard wasn't a good deal for Berkshire Hathaway.
BTC is fall about 5% in a week as investors want to reduce their risk exposure. With the Fed raising interest rates, the era of frenzied speculation is coming to an end, and cryptocurrencies may go down again. He argues that crypto assets are vulnerable because these are all illusory things.
David Kelly said that the Feds stimulus measures over the past two years have driven U.S. bond yields to ultra-low levels. This has prompted investors to turn to highly speculative investments such as cryptocurrencies and unprofitable technology stocks.
He also said If interest rates back to normal levels, those crazy speculative ideas will be dispelled and money will go to assets that are positive and that generate economic returns. The analyst also noted that if The Fed acts faster than market expectations, which may cause severe market volatility. “If you expect the Fed to act more aggressively early on, any asset with a high valuation is vulnerable.” Cryptocurrencies have fallen sharply from their November highs, with total market capitalization down from $3 trillion in November Left and right fell to less than $2 trillion.
For technical mostly are show bitcoin in bearish. There are signs of downside risk on the BTC daily chart, which suggests the pullback could stabilize between the $30,000-$40,000 support zone.
Gold prices extended gains on Friday, hitting the highest level since November last year, due to Ukrainian tensions that stimulated investors' safe-haven demand. Spot gold once rose 2.12% to $1,865.48 an ounce, the highest level since hitting a record high on November 19. Gold prices rose 2.8% this week, the best week since May 7 last year.
U.S National Security Adviser John Sullivan said: on Friday that the United States believes that Russia may seek military action against Ukraine as early as next week, before the end of the Beijing Winter Olympics, or try to spark an internal conflict in Ukraine, which has repeatedly denied plans to attack Ukraine.
Gold's appeal in times of high inflation and geopolitical uncertainty offsets concerns that rising interest rates will hurt demand for gold. Gold prices break higher as the global economy hits if Russia does invade Ukraine, says senior market analyst, Edward Moya. The economic recovery will be hit hard, risks to the outlook have been increasing, and it now appears that accelerated Fed tightening and heightened geopolitical risks will keep many investors safe from gold. No one wants to short gold before the weekend, so prices should be supported by next week.
Oil prices ended an eight-week winning streak. WTI March crude oil futures closed down $0.69, or 0.75%, at $91.07 a barrel on Friday. Brent crude oil futures for April ended up 57 cents, or 0.61%, at $93.54 a barrel.
U.S. Secretary of State Blinken agreed to talks with Russian Foreign Minister Sergei Lavrov next week, this news calming investor nerves and slowing demand for safe-haven assets. However, Russian news agencies reported an explosion in the eastern Ukrainian city of Donetsk.
Oil prices rebounded sharply, though it fell from the previous week for the first time in two months as traders weighed geopolitical tensions in Ukraine and the possibility of Iranian crude hitting the market.
The U.S. further warned of a possible Russian attack on Ukraine. Russia has denied there was an invasion and has repeatedly said there are no such plans. An oil ETF suffered its biggest one-day outflow since July 2020. In addition, rising market expectations for a nuclear deal with Iran are also weakening the bullish signal for the oil market. The nuclear deal is expected to pave the way for the lifting of U.S. sanctions on Iran's crude exports, helping to boost crude supplies.
Senior market analyst Ed Moya said it doesn't matter how tight the oil market is right now, as energy traders are reducing their exposure, and aside from the situation in Ukraine, Iran nuclear talks continue to move in the right direction, possibly for a better deal later this year. More crude oil to enter the market paving the way.
The dollar rose ahead of the long U.S. weekend, as worries about the situation in Ukraine and possible Fed tightening sent investors seeking safety. The Fed's Evans said the stance of monetary policy is wrong and needs to be adjusted substantially, while Williams said he supports a March rate hike and doesn't have a strong case for a “big step” in March.
The dollar pared its weekly loss against the yen to 0.36%, its biggest weekly percentage drop in about a month. The U.S. Treasury yield curve flattened and cross-currency buying in the yen capped gains in the dollar.
Edward Moya, a senior market analyst, said everyone was watching the situation in Ukraine. Everyone is nervous. Everyone is hoping for some de-escalation, but that doesn't seem to be the way things are going, trades have been centered around safe-haven, and it's been a great week for the yen. The yen is a little weaker today, but the overall concern right now is that there is still a lot to say from Russia heading into the long weekend.
Sterling gained 0.18% for the week; UK retail sales rebounded in January as omicron's impact on consumers waned; however, economists expect spending to slow again in the coming months as taxes and energy bills rise.
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