Excessive Fear is driving down markets and the S&P 500 is very close to hitting bear market territory (a 20% drop from the highs). Last week, the Dow Jones was down more than 2% and has fallen for 7 straight weeks - a losing streak not seen since 2001. The S&P 500 fell 2.4% and the Nasdaq slipped about 3%. With the Federal Reserve attempting to contain inflation by raising interest rates, stocks are in the process of trying to find a bottom.
Economic reports from last week came back mixed: •Small Business Optimism - better than expectation •Jobless Claims - worse than expectation •Consumer Sentiment - worse than expectation This week, investors will look for guidance from economic reports like Manufacturing, Retail Sales, Housing and Jobless Claims.