Posted on 02/05/2018 12:54:55 PM PST by SeekAndFind
The Dow Jones Industrial Average has plunged by nearly 1,500 points in a day of volatile trading that has rattled global markets.
The leading US stock market index is down more than 5.8% at 24,025.33.
It is the worst one day fall in points since September 2008 during the depths of the financial crisis.
The decline extends losses on Friday, when strong wage growth data raised the prospect of accelerated interest rate rises.
Monday's sell-off surpasses a 777.68 points drop on the Dow Jones on 29 September 2008 when Congress rejected a $700bn bank bailout plan following the collapse of US investment bank Lehman Brothers.
The Dow was closely followed by the wider S&P 500 stock index, down 2.6% and the technology-heavy Nasdaq, down 2%.
London's main share index, the FTSE 100, closed down 1.46% while earlier, the biggest markets in Asia fell between 1% and 2.5%.
The decline followed months of market increases, which had fuelled concerns that share prices were over valued.
The Dow, which tracks 30 major US companies, has fallen more than 1,000 points over two days of trading.
The Dow dramatic fall marks a turnaround from January, when it raced raced past the 25,000 point and 26,000 point milestones in less than a month.
David Madden, market analyst at CMC Markets, said: "Equity traders were enjoying a bullish run recently, and the jolt from the major decline in the US last Friday has triggered a worldwide round of profit taking."
(Excerpt) Read more at bbc.com ...
I can’t believe so many people are surprised at a CORRECTION on one of the biggest, longest bull markets in all our history. It is normal.
As to the why. Who knows?
But I believe that although it may sound nice, "Quantitative Easing" is an economic pile of horsechit and the Market can't be fooled forever.
“Looks like Soros & Buffett want to mess with Trump.”
How could they do that?
Some of this is a one-time, unintended consequence of the tax reform bill. Individuals have deferred profit-taking from last year’s rally and pushed it into 2018 to get the lower tax rates. We just got hit with a big surge of pent-up profit-taking all at once on Friday and today. After individuals finish selling and the HFT systems calm down, the market should rally back up just like after the Brexit vote. The economic fundamentals are strong and rumors of rising inflation are greatly exaggerated.
Yup. People need to put their tin foil away. This was overdue and how markets act.
Went just went through one of the top three BULL MARKETS in our history. It was due for a correction.
.........and, if you kept cash as part of your portfolio, now is the time to do some bargain shopping!
Gravity, as weak a force that it is, also works on financials.
I JUST SOLD ALL MY STOCKS...
phew.
well, i have none to sell, so i guess i am screwed.
Fire and Fury
“DJT is a master strategist but all the “Hey the stock market is up SOOOOOO much, this is great..!” was a mistake:
That is the SOLITARY matter on which he spoke out on but should not have....”
AGREED,....the same INTERNATIONALIST FINANCIAL CABAL that has been manipulating all the financial market forever is LONG OVERDUE to use their standard weapon of WHIPSAWING THE MARKET in order to attack the first patriotic President we have had in a long time.
What about Soros? Is he still heavily invested in shorting the market, are his cronies now covering his short positions?
3) Money is realigning to companies not dependent of government contracts. Wells Fargo punishment caused a panic.
4) The DNC has no money.
buffet needed Obama regulations to protect his “I got mine” status.
A correction is normal - but this appears to be politically motivated notice it started the day the memo came out.
With the DNC losing any chance of retaking the house and the whole investigation coming apart - they had to find new talking points.
because that computer thing fired everone! who said toilet water makes plants grow!
AND
Brawndo its got electrolites.....
(/sarcasm off)
Caused by computer trading...
Damn. I was too late to time the market.
“How could they do that?”
If a cabal invested in a strategic commodity were to agree to dump their stocks at the same time the action would depress the value of those stocks. They’d start a sell-off much the same way people in third world nations stampede themselves to death: They see someone else panicking and then they panic and then more people join the fear-for-all.
With Soros he’s done this before and he’s made billions by shorting stocks and currencies and then starting panics so people sell their holdings...and then he doubles down by buying up the discounted shares and currencies before people realize that they made a mistake.
“Caused by computer trading...”
Are you talking about the same ‘computer trading’ that caused the stock market increase or are you talking about some other type of ‘computer trading?’
It happened because Munuchin talking down the dollar, people worried about rising interest rates in this good economy, inflation and automated selling and buying.. The percentage down is no way near an all time high.. I’m just ticked I listen to so-called professionals and not my own instinct. It’s all good in the end!
Market was scared of higher interest rates..and computer trading takes over... this is nothing in 1987 it went down 22 percent..and a few months later it was higher..
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.