Stocks took a hit on Monday, as fears of a potential recession in the U.S. economy led to a sharp sell-off in the market. The S&P 500 extended its losing streak into a fourth week, reflecting widespread investor anxiety. Trading volume surged, with the New York Stock Exchange (NYSE) composite volume reaching 6.5 billion shares, exceeding 125% of the average over the past 30 days, according to FactSet data. Meanwhile, Nasdaq composite volume hit 8.79 billion, more than 106% of the past month's average.
The S&P 500 futures remained relatively unchanged on Monday night, despite the day's earlier turmoil. The market's reaction signifies mounting concerns over the possibility of an economic downturn.
In a session marked by volatility, new 52-week lows significantly outnumbered new highs across major exchanges. On the Nasdaq, there were 413 new lows compared to just 69 new highs. The NYSE experienced a similar trend, with new lows surpassing new highs by 137 to 42.
"This is starting to feel like a capitulation in the market," – Anastasia Amoroso, chief investment strategist at iCapital.
Nasdaq suffered its worst single-day performance since September 2022, with over 82% of shares falling in price. Only 17.21% of shares on the Nasdaq advanced. The NYSE fared slightly better but still saw 76.38% of total volume declining and only 22.75% advancing.
Several notable companies experienced significant stock fluctuations amidst the broader market decline. Shares of Delta Air Lines plunged approximately 14%. The company attributed part of this decline to "the recent reduction in consumer and corporate confidence caused by increased macro uncertainty." Asana saw its stock plummet by more than 25%, following CEO Dustin Moskovitz's announcement of his upcoming retirement.
In contrast to the general trend, Oracle emerged as a rare bright spot. The cloud computing company's stock gained 3%, buoyed by its announcement of a 25% increase in its quarterly dividend to 50 cents per share.
"We've been waiting for the market to, on a broad basis, hit oversold levels, and I think we're going to get there today. If not today, most likely this week." – Anastasia Amoroso, chief investment strategist at iCapital.
The Dow Jones Industrial Average also reflected investor nervousness, closing below its 200-day moving average for the first time since November 1, 2023. This technical indicator is often viewed as a measure of sentiment and market momentum.
Investors are closely watching these developments, as they weigh the potential impact of economic factors on market stability. The increased trading volumes and significant declines in stock prices underscore the current climate of uncertainty and caution among market participants.