The current conditions in market are not pretty good. The fear of recession is still increasing and nobody seems to be prepared to face it. S&P 500—the share market index based on stock performance of the US-based 500 giant ventures—has fell down to 2.4% from its constant highs of all times. This is surely not a good sign for market as it has to face a lot of minefields this year which may result into blowing up several investment bankers at some points. Various triggers have been set for these mines out there and they may look simple but are quite catchy in real.
FED has lowered the interest rates to reduce the risk of recession. Despite this, the investors are not interested in taking advantage of the rate cuttings and denying to buy cheaper stocks from FAANG—Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), Google (GOOG)—which were once popular and valued insanely. The FAANG stocks—especially, Netflix, Facebook and Amazon—have been scattered by average 15.6% in last three- month period. The stocks are marked as underperformers by S&P 500 (below 1%), Dow Jones (below 1%) and Nasdaq Composite (below 1%). However, Google and Apple are securing fluency by hiking up to 8.5% and 13.5%, respectively, in last three months. The NYSE FANG+, bearing stocks of Nvidia (NVDA) and Tesla (TSLA), is croaked down foe these 3 months.
Despite, interest rate cuttings, the risk of recession is still not reduced yet. The 10-year and 3-month treasury curves are inverted and this is a clear warning to the market for recession. The recession probability index by FED is nearly 40%. The average index of Dow Jones Transportation (DJT) is considered as a proxy on global economy health. As the transportation service has weakened due to lack of confidence among investors, the index has lowered, too. DJT has fallen down 8% and hence is lagging the more broad market indices.