The markets just closed out a manic week.
Why it matters: Outsized — and in some cases historic — moves were evident across the board.
A few places it’s playing out…
Stocks: The tech-heavy Nasdaq Composite index fell 5% this week, its ugliest performance since October.
- The “meme trade” reemerged, with GameStop stock gaining 156% this week, a record second only to … that week in January.
- Separately, the SEC suspended trading in 15 different penny stocks Friday “because of apparent social media attempts to inflate their stock price” — its latest action on this front, the agency said this afternoon.
Bonds: There was a rare, massive surge in yields, followed by a sharp reversal. This is not often a wild market, but a measure of bond volatility this week hit the highest level since last April, Bloomberg reports.
- Inflation fears — and how the Federal Reserve will respond — hit a fever pitch. The 10-year government yield hit its highest level in a year (above 1.6%) on Thursday. It ultimately pulled back to 1.4% Friday.
- The yield on a separate bond (the 5-year) saw the biggest single-day increase in over a decade on Thursday, per Tradeweb data.
- And what you’ll earn on dividends from the S&P 500 matched the return on the 10-year bond — a pandemic-era first notched this week.
Then there’s bitcoin: Prices fell roughly 20% this week, the worst drop since March.
- A warning from soon-to-be public company Coinbase: The unveiling of Bitcoin’s anonymous creator Satoshi Nakamoto and what he does with his stash could have a massive impact on the entire crypto market.
Source: Axios Breaking News