Russia and rate worries pushed stocks lower last week, suffering their second consecutive week of declines. Worries about an imminent Russian invasion of Ukraine and high inflation weighed on market sentiment.
Large Cap indices moved into correction territory last week, down more than 10% from recent highs, but rallied back by the weekend. The Russell 2000 Index of small-cap stocks tested bear market territory, down nearly 20% off its November peak, but also rebounded.
The U.S. stock market suffered its worst week of performance since March 16, 2020's pandemic sell-off. Rising rate fears and growth concerns hit markets hard, with tech shares taking much of the brunt causing the NASDAQ Composite to plunge 7.5%.
As earnings season gets into high gear, inflation and rate worries continue to weigh on investors. The major US indices recorded their second consecutive weekly loss and the tech-laden NASDAQ posted its third. Financial shares were also under pressure as JP Morgan and Citigroup reported lower fourth-quarter profits. Energy shares rallied on higher oil prices, which have revisited late-October highs.