New downward acceleration for Wall Street. After about three hours of trading, all the indices travel to the lows of the day with volatility to the maximums of about one year. The Cboe Volatility Index, or VIX, reached its highs almost in the year, reaching 38 levels, at levels not seen since the end of January 2021. The geopolitical tensions in Ukraine add to the expectations for the market. Federal Reserve meeting this week. Goldman Sachs now expects a faster pace of Fed tightening with the possibility of the FOMC taking restrictive action at every meeting starting in March until the inflation picture changes.
The Nasdaq Composite hit a low of 13,094 points, down about 5%. Drop of 4% for the S&P 500 which came to mark over -10% from the all-time highs, also entering correction territory.
Netflix, fresh from the drop of 21% on Friday, today marks another -11%. The Tesla stock also fell sharply (-9% to $ 858) which, like Amazon (-4.65% today), is in the Bear territory (over -20% from the maximum). Microsoft marks -5.25%. over -4% today also for Apple and Meta.
Big Tech that affect the performance of the Wall Street indices like never before. In particular, the Nasdaq Composite Index, made up of over 3,000 stocks, sees the top 10 stocks out of these 3,000 making up over 50% of the entire weighting of the index (52.5% to be exact). The top two stocks – Apple and Microsoft – alone account for nearly 22%.