Worst Week in Two Months Rattles Equity Bulls as Earnings Loom
- S&P 500 almost erases gain for 2016 as volatility returns
- Corporate profit forecast to drop 10 percent in first quarter
Pedestrians carry umbrellas while walking past the New York Stock Exchange (NYSE) in New York, U.S., on Monday, April 4, 2016. U.S. stocks fluctuated near their highest levels this year, with gains in health-care shares offsetting declines among consumer companies, as investors looked for fresh reasons to extend a rally.
Photographer: Michael Nagle/BloombergIt’s official -- the rally in U.S. stocks that erased the worst-ever start to a year has fizzled, with the biggest weekly slide since February depriving the bull market of momentum ahead of what’s forecast to be the steepest earnings slump since the financial crisis.
The Standard & Poor’s 500 Index fell 1.2 percent in the five days to 2,047.60, the second slide in the three weeks since the gauge erased an 11 percent loss for the year. The period was tumultuous, with the average daily swing of 0.8 percent the most in a month, while three days of 1 percent moves ended a 15-day stretch of calm, the longest since March 2015. The Chicago Board Options Exchange Volatility Index capped its biggest weekly advance since January.