The stock market loses 13% in a correction on average

“It’s a bad sign that oversold markets not bouncing,” Michael Hartnett, Bank of America Merrill Lynch’s chief investment strategist, wrote. “The inability of oversold markets to bounce suggests investors worried by either systemic financial market event or recession.”

Tech has been especially slammed this week. The Nasdaq Composite dropped 1.7 percent Friday, led lower by Amazon and Google parent company Alphabet, which dropped 6.7 percent and 2.2 percent, respectively. Both tech giants released quarterly earnings that topped analyst estimates, but revenues fell short.

“Asset carnage is cross-market and has infected U.S. tech leadership,” Hartnett pointed out, adding that the asset class is oversold. He also named lower oil and wider credit spreads as recession “tells” and reasons to stay bearish.

Hartnett warned last month that the “Great Bull” market that began at the bottom of the financial crisis is dead. The strategist highlighted rising interest rates, slower economic growth and excessive amounts of debt.

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