The S&P 500 slid 160 points, or 3%, to 5,186 on Monday, the index’s biggest one-day drop in nearly two years, according to FactSet. After surging as high as 4.22% on Tuesday, the yield on the 40-year Japanese government bond pulled back to 4.05% Wednesday. That would have been on top of a 15% tariff specified by a trade agreement with the European Union that has yet to be ratified.
Australian shares plunge to six-month low in sharp drop
The volatility follows a pre-earnings rally where the stock reached $129.36 on Monday. However, investors appear to be reacting to lean cash flow figures and ongoing “term duration headwinds” that have pressured margins in recent months. The massive sell-off represents a significant disconnect from the broader Software – Infrastructure industry, which saw an average gain of about 0.8% today. The drop effectively erased months of gains, with the stock now trading near its 52-week low of $84.50. The sharp decline occurred despite the company reporting record-high revenue and announcing an expanded partnership with Google Cloud just one day prior.
Financial analyst on stock market turmoil and what it means for your 401K
They remain net sellers so far this week. The sell-off comes after the index compiler said it would immediately pause certain index changes, including additions, until regulators address concerns over tightly held ownership of listed firms. The benchmark Jakarta Composite Index fell as much as 8.8 per cent, triggering a 30-minute trading halt.
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- Other countries around the world have promised retaliatory tariffs, too.
- With the stock trading at $89.82, CVLT is currently down roughly 41% from its 52-week high of $200.68.
- The oil field services company rose 4.1% after reporting a stronger profit for the latest quarter than analysts expected.
- Instead, Thursday’s price action showed “the market has decided that there is pretty much no way to spin it as a positive,” he said.
- The losses continued Monday with the S&P 500 down 3.8 per cent in early trading.
- When a clear risk-off situation creates uncertainty, investors are trained to hedge their risks, which includes selling stock, selling the dollar and selling U.S.
Shares dropped significantly after the company announced a plan to mitigate costs
A swift and sudden downdraft in global stocks is raising concern among ordinary investors about the impact on their portfolios and 401(k) plans. Kraft Heinz sank 5.7% after Berkshire Hathaway warned investors that it may be interested in selling its 325 million shares in the food giant that former CEO Warren Buffett helped create in 2015. When a clear risk-off situation creates uncertainty, investors are trained to hedge their risks, which includes selling stock, selling the dollar and selling U.S. Overseas investors sold 13.96 trillion rupiah ($834.43 million) worth of Indonesian stocks in 2025, the worst year of outflows since 2020, with the sell-off continuing in January, according to LSEG-compiled data. The market opened in jitters with the benchmark Jakarta Composite Index plunging nearly 7 per cent, with heavyweight stocks from state-owned banks and companies linked to major conglomerates, under significant selling pressure.
Another Nor’easter could develop in the Maritimes this weekend
If you don’t want to deal with all that risk, make sure you have a deep pool of funds outside of stocks – such as a money market fund – which is likely to maintain or even increase its yield as tariffs boost inflation. We sell different types of products and services to both investment professionals and individual investors. Figuring into the economic uncertainty, investors are now left to wait and see how U.S. trading partners respond to the Trump tariffs. But even bear markets, or when stocks decline at least 20% from their peak, are normal and aren’t a reason to panic, experts say. In other words, traders have had to sell assets to cover their trades, which could be feeding into the stock market declines, experts said.
Gary Tan, a portfolio manager at Allspring Global Investments, pointed out that MSCI’s announcement could trigger near-term selling pressure in Indonesian equities. In a statement released on Tuesday, MSCI said that it had concluded its consultation on the assessment of free float for Indonesian shares. The decision added to mounting pressure on South-east Asia’s largest economy, where investor sentiment has already been strained by concerns over the government’s fiscal trajectory and increased currency volatility. The sell-off followed a pointed warning from the global index provider, which raised fresh doubts about the investability of Indonesian equities. The index extended its losses to as much as 8 per cent, prompting the exchange to impose a 30-minute trading halt at 1.34 pm Jakarta time, shortly after canadian forex review the second trading session opened. Such concentrated ownership often leads to sharp price swings, masks market performance and heightens the risk of manipulation.
- Piper Sandler suggests the stock is undervalued, implying an enterprise value of nearly $9 billion.
- If you’re new to options and have limited capital, put writing would be a risky endeavor and not a recommended one.
- “While there is short-term hysteria around tariffs, the hope may be that this will give way to medium-term acceptance,” Dowding said.
- Out-of-the-money (OTM) and at-the-money (ATM) put options have no intrinsic value because there’s no benefit in exercising the option.
- That selling wiped a total of $3.1 trillion in market capitalization off the total U.S. stock market on Thursday, according to Dow Jones Market Data – the largest such wipeout since a $3.5 trillion loss on March 16, 2020.
Can I Lose the Entire Amount of the Premium Paid for My Put Option?
The MSCI index of emerging market currencies rose 0.5% to an all-time high in its fifth consecutive session of gains. President Donald Trump brushed off recent weakness in the greenback, exacerbating the dollar selling. The decision follows MSCI’s proposal to tighten its definition of free float for Indonesian stocks, a key factor in benchmark weightings.
The investor could then buy back the 100 SPY units at the current market price of $535 to close out the short position. What if the investor didn’t own the SPY units, and the put option was purchased purely as a speculative trade? (SPY sell price – SPY purchase price) – (Put purchase price) × Number of shares or units But if the underlying price is approaching or dropping below the strike price, hotforex broker review then to avoid a big loss, the option writer may buy the option back (which gets them out of the position). The option buyer can sell their option and either minimize loss or realize a profit, depending on how the price of the option has changed since they bought it. For those who have an interest in options trading, many brokers specialize in it.
The most obvious example is Trump’s announcement of high tariffs on “Liberation Day,” which eventually led to trade deals with many of the world’s major economies. On one hand, the pattern has given rise to the “TACO” acronym suggesting “Trump Always Chickens Out” if financial markets react strongly enough. Trump has a history of making big threats that send financial markets sliding, only to pull back later and reach deals that are seen as less bad for the economy or for inflation than his initial suggestion. The de-escalation in tensions helped the S&P 500 recover just over half of its 2.1% drop from the day before and pull closer to its all-time high set earlier this month. Options trader Chris Dattolo works on the floor of the New York Stock Exchange, Wednesday, Jan. 21, 2026.
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According to CNBC, European states are reportedly considering retaliatory tariffs and broader punitive economic counter-measures against the U.S. “The challenge is that we’re probably going to see prices rise gradually and it’s going back to that self-fulfilling (prophecy) and inflationary expectations becoming entrenched.” In comparison, they anticipate consumer price growth in Canada to stretch to more than three per cent this summer. JPMorgan analysts recently said the odds of a global recession have increased to 60 per cent. The S&P 500 was down more than 17 per cent from its mid-February high on Friday.
Investors will likely monitor whether the upcoming Google Cloud integrations and AI-enabled security features can restore the stock’s momentum in a competitive software landscape. However, the market focused heavily on restructuring costs and duration headwinds that hampered cash flow. The company successfully grew its SaaS footprint and solidified its relationship with Google Cloud. Commvault’s third-quarter results present a paradox of record revenue growth and a collapsing share price. While the top-line growth remains strong, the market appears to be waiting for clearer evidence that the restructuring plan will lead to stabilized cash flows.
Specialist Anthony Matesic, left, and trader Edward Curran work on the floor of the New York Stock Exchange, Wednesday, Jan. 21, 2026. “Corrections of 5-10% are fairly common during bull markets and typically, there is a seasonal pick up in equity volatility during the July-October period,” it added. And that has gone badly wrong, and they are having to very quickly unwind it and it’s having knock-on effects into asset markets.” Aside from fears about the U.S. economy, geopolitical tensions frequently draw concerns for investors, too, including last week’s assassination in Iran of Ismail Haniyeh, Hamas’ top political leader. Because it encompasses 500 stocks, Standard & Poor’s index is often considered a key barometer of the U.S. economy. In a new assessment, the Goldman Sachs investment company said it now expects the Federal Reserve to cut rates at its next three meetings — in September, November and December.
Key stakeholders, including institutional investors who have long defended Tesla’s premium valuation, are now questioning the company’s “Giga Berlin” strategy. This sharp sell-off reflects growing investor anxiety that the “high-growth” narrative surrounding the world’s octafx review most valuable automaker is being rewritten by aggressive competition and shifting regulatory landscapes in its most critical overseas market. Subscription revenue, a key metric for the company’s transition to cloud services, increased 30% to $206 million, reflecting its position among high-performing growth stocks. The dollar outlay for in-the-money (ITM) puts is higher than for out-of-the-money (OTM) puts because they give you the right to sell the underlying security at a higher price.
The value of a put option generally decreases as it approaches expiration because of the impact of time decay. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Globetrotting musician-turned-successful day trader with a passion for teaching… A college dropout who pursued day trading and has made over $1 million in trading profits. Turned $2,000 into nearly $2 million in lifetime trading profits by the age of 26!
