S&P 500 loses more than 1.5% to new weekly lows around 4,320

• Major US stock indices look poised to end the week lower and hit lows on Friday.
• Traders cited concerns about global monetary tightening by major central banks as a factor weighing on sentiment.
• The S&P 500 fell more than 1.5% to about 4,320.

Major US Stock Exchanges fell for the second straight session on Friday and appear on track to close the week at new monthly lows, with traders citing aggressive comments from Fed, ECB and BoE officials this week as continuing to weigh on sentiment. The weaker-than-expected preliminary US services PMI results recently released probably did not help sentiment. The S&P 500 last traded around 1.7% and near the 4,320 level, bringing its losing streak from Thursday’s highs above 4,500 to around 4.5%.

The index was on track to post a third consecutive weekly loss of around 1.7% and has now convincingly relinquished its grip on the 50-day moving average, which sits just above 4,400 and previous weekly lows in the 4,370 zone. The bears will now inevitably look for a return to yearly lows below 4,200 given the lack of any notable support levels in the interim.

In terms of the other major US indices, the Nasdaq 100 held up a little better, last trading down around 1.2% on the day but still above 13,500 amid some stabilization. in long-term returns. On the week, however, the massive surge in long-term returns has put the tech/growth stock index under heavy selling pressure and the Nasdaq 100 looks set to end the week down 2.5%, three consecutive weeks of losses.

As for the Dow, the index is currently the worst performer of the major US indices on the day having lost around 1.7% to fall from its 21 DMA near 34,700 to below its 50 DMA. at 34,250. But on the week, it has held up better than its peers. However, the index is still on track to post a negative weekly close (approximately 0.75% lower), which would mark the fourth consecutive weekly loss.

The Dow’s underperformance on the last day of the week can be explained in part by the underperformance of the health care sector (which is heavily represented in the index) after hospital operator HCA Healthcare issued dovish earnings forecasts. and, as a result, fell more than 15%, which affected the entire sector. But this goes against the general tone of earnings so far this season.

According to Refinitiv data cited by Reuters, of the 99 companies that have posted earnings so far, 77.8% have beaten analyst forecasts, above the long-term average success rate of 66%. Attention will remain on next week’s earnings and whether decent numbers could give the battered market any reason to cheer. Large-cap companies like Microsoft, Amazon, Apple, Boeing, Ford and Exxon Mobil will report.

Technical levels