$DNN $LAC $NTR $XP $URG Stocks closed sharply lower yesterday with the tech-heavy Nasdaq leading the way, giving up -4.25%. The S&P was next with -3.20%. Exacerbating the losses was a pullback in energy. Strong energy stocks have helped the S&P avoid the steeper declines that we've seen in the Nasdaq. But yesterday's hit in energy stocks just magnified the S&P's drop. There wasn't any real new news triggering the selloff. But the old news of high inflation, and worries that the Fed will overcorrect on rates (i.e., raising too high and too fast after being asleep at the wheel all last year over inflation), was enough for investors to further reduce their risk. The market appears to be pricing in a worst-case scenario, which includes a recession. But, the economy is actually in better shape than the market is giving it credit for.
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