January 25 - 29, 2021 Recap
S&P 500 Erases YTD Gains
U.S. stocks fell sharply with the S&P 500 turning negative for the year (-1% YTD) after posting its worst week since October. Wall Street action reflected disappointments in slower-than-expected vaccine rollout and lingering adverse effects to the economy. End of week losses also mounted amid the chaotic impact from online retail investors’ buying frenzy in heavily shorted stocks, especially among small caps.
For the week, the S&P 500 slumped 3.29%, the Dow Industrials lost 3.27%, and the tech-heavy Nasdaq Composite retreated 3.48%. The small cap-focused Russell 2000 tumbled 4.4% last week.
The Weekly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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