Have Stocks Dropped Enough?

Have Stocks Dropped Enough?

3D Rendered Abstract Background of one hundred dollar bill with stock market chart It was a rough week for stocks around the world. Even before the U. S. market opened on Friday, Hong Kong's Hang Seng has dropped 3. 4%, while Japan's Nikkei was down 4%. It was the worst decline in the Hang Seng in nine months. In just one week. the focus of investors has changed, as "Investors are now fixated on the risk of inflation and economic overheating," said Tai Hui, chief Asia market strategist at JP Morgan Asset Management. One of my favorite momentum indicators, the Moving Average Convergence-Divergence, has been pointing towards higher yields for the 10 Year T-Note since June of 2020. Last week, I noted the "rapid increase in yields may create worry among investors". The yield pulled back on Friday, closing at 1. 460%, which was sharply higher for the week but below the week's high at 1. 614%. Large tech stocks were down this week on concerns over how yields will impact earnings, leading the Nasdaq 100 to fall 4. 9%. The Dow Jones Utility Average was even weaker, down 6%. Both the SPDR Gold Shares and iShares Russell 2000 were