Several of the top stocks that drove the market’s historic rise in the middle of the pandemic fell further than the broader market, as investors pack into safer assets and shun their one-time favourites as fears of a recession and more aggressive monetary policy escalate.
Markets dipped Thursday after several economic indicators, including surprisingly strong unemployment data, struck fears that the Fed will be more hawkish than previously expected.
“Monetary policy will need to be restrictive for some time to have confidence that inflation is moving back to target,” Lael Brainard, the Fed’s vice chair, said in a Friday speech. “For these reasons, we are committed to avoiding pulling back prematurely.
“We also recognise that risks may become more two sided at some point. Uncertainty is currently high, and there are a range of estimates around the appropriate destination of the target range for the cycle.”
Fellow pandemic darling stocks Zoom and Netflix each posted modest gains this week, but are each still down about 60% year-to-date.
AMC and Bath & Beyond’s meme stock compatriot GameStop is up 2% this week but still down 34% this year.
This article was first published on forbes.com
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