Last week, several high-profile technology companies announced disappointing earnings results, while worse-than-expected trade and retail sales numbers caused economists to lower their expectations for economic growth. All of these factors contributed to a very disappointing week for the equity markets and an equally positive week for bonds. For the week, the Dow Jones Industrial Average fell 3.6 percent to close at 10,087, the S&P 500 Index lost 3.3 percent to end at 1,143 and the Nasdaq Composite dropped by 4.6 percent to 1,908. In the bond market, prices rose as yields correspondingly fell. The yield on the 10-year Treasury dropped from 4.49 percent to 4.28 percent over the week.
Year to date, the Dow and the S&P are down about 6 percent and the Nasdaq is down close to 12 percent. As a result of these losses, the stock market has retreated to the levels it experienced before last year