Stocks are headed for their fourth week of losses
That said, stocks were actually in the green around midday on Friday. The Dow (INDU) was up 0.4%, or 96 points, and the S&P 500 (SPX) was up 0.6%.
But the two indexes are on track for their fourth down-week in a row, the worst such losing streak since August last year, when trade tariffs and retaliations dominated the market.
The S&P — the broadest measure of the US stock market — is also uncomfortably close to correction territory, defined as a 10% drop from the peak.
The Nasdaq Composite (COMP), the only index that had opened higher, was up 0.6% mid-morning. The tech-heavy index turned flat for the week during Friday’s session.
Market dynamics are all over the place these days. The presidential election is less than six weeks away and uncertainty about the outcome — and when the outcome will be known — is increasingly weighing on stocks.
On top of that, the economic recovery is showing signs of slowing. In the latest example, Friday the Census Bureau reported that orders for durable goods, such as cars, slowed more than expected in August. They rose 0.4% compared with a 11.7% jump in July.
Meanwhile, Washington has so far been unable to agree another stimulus package, as finding a new supreme court judge after the death of Justice Ruth Bader Ginsburg has taken over the capital.
US-China tensions, which have overshadowed the market regularly for years, are also on the rise again.
In the weeks to come, earnings season for the third quarter of the year will also get under way, so there’s plenty to keep investors busy.
The message is clear: Volatility isn’t going away any time soon.