- Stocks in the United States fell in the afternoon session, echoing late-week swings as investors reduced their holdings in risky assets. The Nasdaq 100 has crossed into correction territory as a result of the rout.
- Declines in tech shares dragged the S&P 500 down, reversing gains of more than 1%. From a November peak, the Nasdaq 100 is down more than 10%.
- Netflix dropped ahead of its earnings. Treasury yields fell, but concerns about increasing inflation and the potential of Federal Reserve interest rate hikes kept it higher for the week.
- The stock market's recovery was part of the playbook for a volatile month that saw the S&P 500 fall through a crucial technical support level and the Nasdaq Composite into correction territory.
- Markets may take some time to find a bottom, with policymakers signaling rate hikes in recent weeks and the possibility of the Fed reducing its Treasury holdings threatening to inject more volatility across a range of assets.
