The Wide market
Monday fell sharply: The Dove
Afternoon trading was down 400 points, or 1.1% S&P 500
1.4% and 1.8%, respectively.
Growth stocks in particular have fallen so far this year due to fears that inflation will slow the economy.
The so-called FAANG shares – Facebook owner Meta platforms (FB)
, Apple (APL)
, Amazon (AMZN)
, Netflix (NFLX)
And Google owner letters (Google)
– All have fallen sharply in 2022 Microsoft (MSFT)
, Chip giant Nvidia (NVDA)
And Elon Musk Tesla (DSLA)
The SPDR Portfolio S&P 500 Development (SPYG)
The ETF is already down more than 6% by 2022 iShares Russell 2000 development (IWO)
The ETF, which holds shares of small growth stocks, has fallen 7.5% since the beginning of the year.
“If the first week of the year is a sign of what to expect in the coming months, investors should be active by 2022 and they should be aware of the growth of stocks,” said Solita Marcelli, a leading investment firm. U.S. official in UBS Global Wealth Management in a statement on Monday.
It is noteworthy that two major value sectors, financial stocks and oil companies, are thriving.
The Invesco KBW Bank (KBWB)
The ETF was flat on Monday and is up 10% this year. Banks are the beneficiaries of higher interest rates because it makes the loans more profitable.
Investors will be interested to see what megabanks are JPMorgan Chase (JPM)
, Citigroup (C)
And Wells Fargo (WFC)
Tell me about the higher bond returns when reporting earnings on Friday.
And this Department of Energy Selection SPDR (XLE)
ETF, owned Exxon Mobil (XOM)
, Chevron (CVX)
, Gonocophilips (COP)
And other oil companies, up 9% this year as crude prices have risen from about $ 72 a barrel to $ 78 a barrel in the past month.
And so on Not all sectors will be affected by inflation
, As the big winners of the bull run over the past few years have finally begun to lose their luster, interested investors have begun to make changes to their portfolios.
Marcelli of UBS raises central bank rates, saying “ratings for growth companies should be depreciated more quickly compared to value stocks.”
“That’s what happened in the first week of the year,” he said.