Nasdaq leads downside as S&P 500 records fresh 2022 amid lower market sell-off

The Dow Jones Industrial Average and Nasdaq Composite closed lower on Monday after heavy selling hit the stock market last week in the wake of the Federal Reserve’s rate hike announcement. The Nasdaq led the downside while the S&P 500 is down more than 2% on the day, hitting a new low at just under 4000 for 2022.


Nasdaq index leads to the downside with lower oil

A half-point increase in the federal funds rate on Wednesday, followed by comments from Federal Reserve Chair Jerome Powell, sent stocks initially higher last week. But the gains were short-lived as the Dow Jones fell more than 1,000 points on Thursday and continued to decline on Friday.

At the close on Monday, the Dow Jones Industrial Average was down 2% and closed near its intraday lows. The Nasdaq fell 4.3% after falling more than 1.5% last week. Meanwhile, the S&P 500 is down 3.2%. Small capital Russell 2000 lost 4.2%. According to IBD data, volume was higher on the Nasdaq and the New York Stock Exchange versus the New York Stock Exchange. Same time on Friday. This is a largely bearish indicator as it shows the institutional distribution.

On Monday, the 10-year Treasury yield was trading at around 3.08%. Meanwhile, crude oil fell, causing a massive sell-off in energy stocks. Energy stocks, holding firm amid the market correction, led the downside among the S&P 500 sectors. The Energy Specific SPDR (XLE) lost about 8.2%.

The decline came as the price of US crude oil fell more than 6% to $102.70 a barrel. Oil prices fell on fresh data from China showing a slowdown in exports. Chinese exports rose 3.9% from a year earlier in April, a significant drop from 14.7% growth the previous month.

Stocks to Watch: These Stocks Make a Breakout

The Innovator IBD 50 ETF (FFTY), an indicator of growth stocks, was down 6.3%. It has certainly been an unforgiving market for growing stocks. The index gap narrowed and was led by heavy losses in many shipping stocks, including ZIM Integrated Shipping (ZIM) and eagle wholesale shipping (EGLE), as well as oil and gas stocks such as Flex LNG (FLNG) and Earthstone Energy (ESTE).

But two of the growth stocks in the MarketSmith Growth 250 Index have managed to post breakthroughs.

Consumer Portfolio Services (CPSS), a consumer loan services firm that trades on Nasdaq, broke through the entry level 14.87 in solid volume. The stock has been showing a multi-day rally in high volumes lately, which is a bullish sign. Stocks stay true at the point of purchase in the afternoon. Buying area topping at 15.61.

Giant food product Mondelez (MDLZ) also recorded a breakout from the entry level 66.45. Stocks have formed a cup base with a handle since the start of 2022.

The stock’s RS line is rising to new heights amid heavy market selling on Monday. Mondelez shares rose 0.8 percent on Monday. The stock remained just below the buy point in the afternoon.

The struggle of oil and fertilizer stocks

Oil and fertilizer stocks, two market areas that held up, battled in Monday’s market.

bungee (BG), the fertilizer and agricultural products maker, fell 6.4% and traded well below its 50-day moving average for the first time since it broke out on Jan. 3. 7.

Play other major fertilizers outside NASDAQ Nutrients (NTR), which lost more than 10% and was removed from the IBD leaderboard.

oil explorer Canadian Natural Resources (CNQ) reduce the 50-day streak while Comstock Resources (CRK) Its first break below the 50-day moving average since the breakout last March made 10.62 in a six-month cup with a handle, according to IBD MarketSmith.

Outside of the IBD 50, other stock market leaders in the energy sector have been struggling to hold their 50-day streaks Matador Resources (MTDR), Fiber Energy Partners (VNOM) and lovely ingredients (Dar: house).

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