Homebuilders ETF plunges to extend longest-ever losing streak
The home builder sector continued to suffer its longest-ever losing stretch, as it fell into bear-market territory Thursday amid growing concerns over the impact of rising interest rates. The SPDR S&P Homebuilders ETF dropped 1.6% in afternoon trade, with 30 of 35 components losing ground, as it headed toward its 12th-straight decline. That’s by far the longest losing streak–the second-longest is eight sessions–since the ETF started trading in February 2006, and for the lowest close since Aug. 24, 2017. It has now lost 20.2% since its Jan. 22, 2018 record close $46.75. Many chart watchers define a bear market as a decline of at least 20% on a closing basis from a bull-market high. The ETF’s weakness comes as the yield on the 10-year Treasury note, which helps determine mortgage rates, has run up 0.788 percentage points this year to a seven-year high of 3.197% on Thursday. Meanwhile, the Dow Jones Industrial Average slumped 341 points Thursday, but has gained 7.2% this year.
Source : MTV
