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Technology

S&P 500 Losing Streak: Facebook Turns Red

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Several key reasons for a negative sentiment include the ongoing presidential elections, the FED, and a weaker than expected earnings season

As the US capital markets continue to tumble, it is not a very good time for fresh entry, as investors may continue to lose on their investment. The recent turmoil in the S&P 500 index is perhaps the strongest losing streak after the great recession of 2008. While a lot of factors may be held responsible for a bearish sentiment among investors, more and more reasons continue to emerge. The recent jobless claims data received shows the highest number in the last three months.

Several key reasons for a negative sentiment include the ongoing presidential elections, the FED, and a weaker than expected earnings season. Although famous tech companies such as Facebook Inc. (NASDAQ:FB) have reported better results, weak guidance has been taken very negatively by investors, as shares of the social media giant continued to tumble in yesterday’s session. It won’t be wrong to term November as an unfavorable month for the Menlo Park-based company.

It should be noted that there hasn’t been a change in the fundamentals of companies. Such an instance is of e-commerce giant Alibaba Group Holdings Ltd, that reported impressive numbers, but its shares are now trading below the $100 mark. Going forward, The Country Caller expects the markets to remain dull, as the presidential election is due on Tuesday.

The event will play a major role in determining the position of markets in the near term, while the situation would improve in the long run. TCC therefore recommends investors to hold on to their positions, while they should wait for the big day before taking any further positions. All the technical indicators of the S&P 500 give sell signals, while the major support level of the index today is 2090.7.

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