Stocks Notch Steep Weekly Losses as Selloff Deepens

Fed Chair Jerome Powell suggested higher interest rates are here to stay

Digital Content Manager
Aug 26, 2022 at 4:34 PM
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Federal Reserve Chairman Jerome Powell's remarks at the Jackson Hole symposium finished Wall Street's latest rally. Powell noted the central bank is adamant in its fight against inflation, raising the possibility of higher interest rates for a bit longer. Traders unpacked the personal consumption expenditure (PCE) index's first monthly drop in over two years, a narrower-than-anticipated drop in the core PCE, and a consumer confidence index that came in above expectations as well.

Stocks sold off in response, with the Dow shedding 1,008 points and logging its worst daily percentage drop since May, while both the Nasdaq and S&P 500 sank into red ink, posting their worst daily performance since June. All three major indexes also marked steep weekly losses. Meanwhile, the Cboe Volatility Index (VIX) settled at its highest level since July, and scored a nice weekly win to boot. 

Continue reading for more on today's market, including:

  • Options traders blasted Gap stock post-earnings.
  • Potential sale rumors had this software name surging.
  • Plus, solar stock peaks on upgrade; full-tilt trading with our own senior market strategist; and DG brushes off bull note.

The Dow Jones Average (DJI - 32,283.40) shed 1,008.4 points, or 3% for the day, and 4.2% for the week.  All 30 Dow members ended lower today, with 3M (MMM) pacing the laggards with a 9.5% drop.

The S&P 500 Index (SPX -  4,057.66) lost 141.6 points, or 3.4% for the day, and 4% for the week. Meanwhile, the Nasdaq Composite (IXIC - 12,141.71) fell 497.6 points, and 4.4% for the session, or 4.4% for the week. 

Lastly, the Cboe Volatility Index (VIX - 25.56) rose 3.8 points, or 17.4% for the day, or 24.1% for the week. 



5 Things to Know Today

  1. redacted copy of the affidavit used to gain a search warrant for former President Donald Trump home cited "probable cause" to believe evidence of obstruction would be found. (CNBC)
  2. Warner Bros Discovery-owned (WBD) HBO announced "House of Dragons" is confirmed for a second season, after its overwhelming success. (MarketWatch)
  3.  Analyst praise pushed this solar energy stock to 11-year highs.
  4. How a professional poker player applied his skills to swing trading.
  5. Dollar General stock was looking to extend losses despite bull note.

Earnings August 26


Gold, Oil Prices Moving in Opposite Directions

Oil prices finished higher on Friday, nabbing a 3% weekly gain after recent production cut talks. Recession fears and the impact it could have on crude demand left investors feeling uneasy, however, with the potential for more interest rate hikes still on the table. October-dated crude added 54 cents, or 0.6%, to close at $93.06 per barrel on the day.

Meanwhile, gold prices settled sharply lower on the heels of today's Fed comments, which hinted at more interest rate hikes as the central banks attempts to tamp down inflation. December-dated gold shed $21.60, or 1,2%, to close at $1,749.80 an ounce, and fell 0.7% for the week.


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