Dow futures tumble as Wall Street preps for meltdown

CnbC ^ | 8/24/2015 | Jenny Cosgrove

[EBH]

U.S. stock index futures screamed lower, with Dow futures (Chicago Board of Trade: @DJ.1) tumbling more than 400 points, as fears surrounding the health of China's economy multiplied.

These concerns saw the benchmark Shanghai Composite (Shanghai Stock Exchange: .SSEC) index notch up its biggest one-day percentage loss since 2007 on Monday, closing down 8.5 percent .

Panic spread to European markets, with the pan-European FTSEurofirst 300 (FTSE International: .FTEU3) as much as 3 percent in early London trading. All major bourses were off a similar amount. The index has shed over $1 trillion in market value in August so far.

[dragnet2]

-443 dropping again.

Those folks will be seeing a lot of this....

[EBH]

Wait...this is what they were saying just 50 minutes ago

Stock indexes cut their losses to normal proportions in afternoon trading Monday. The Nasdaq plunged 8.8% at the open and then patched over all but 0.4%. The S&P 500 and the Dow Jones industrial average trimmed their losses to 1% and 0.8%, respectively.

Read More At Investor's Business Daily: http://www.investors.com/default.htm#ixzz3jl4dFC9p

[plain talk]

Without the fed the Dow would be sitting about 10k. The feds pumped the market by encouraging Mom and Pop to buy equities since they have to pay the bank to hold their money. Every correction is the machines cashing profits courtesy of Mom and Pop 401k.

There is a macro impact that the Fed has artificially affected with low interest rates Then there is the day to day churn. One cannot time the market because of all the mechanized buys and sells. An individual cannot compete with these machines.

The Fed has kept rates low for at least two reasons -- weak economy and to keep low interest on the debt. Once interest rates rise the interest alone will consume the budget. Neither the Dems or Pubs want to talk about this dirty little secret. We face an annual balloon note of epic proportions once rates normalize.

Investment firms and individuals have been buying stocks because bonds are not worth messing with in low interest rate environments plus bond principals will tank even further as rates increase. Money is in stocks because there is nowhere else for money to go. Heck you can get stock dividends almost as high as bond rates ...and in some cases even higher than bond rates.

[dragnet2]

I had no idea how well the market was doing, thanks for that tip.☺

[donaldo]

QE 4? QE 5? QE 6? Let’s keep that asset bubble bubbling!

[Mad Dawgg]

"and in some cases even higher than bond rates."

Last time I checked before the recent plunge AEP had a DIVY of around 3%

[Rusty0604]

Believe me, it wasn’t fun but I got a first hand education of public employee unions.

[Rusty0604]

I saw that, I also watched Cramer reading the email. I was thinking Apple will go up now.

[Jane Long]

Ouch....Dow -585

[Chgogal]

Oil below $38. How long before it hits $35?

[Chgogal]

605

615

617

[Chgogal]

628

629

631

640

627

[Jane Long]

Held it up, as long as they could?

[NeoCaveman]

I thank our overlords for giving us a place to trade out some stocks back a few hours ago.

[Chgogal]

659

678

680

682

[Jane Long]

;-)

[Chgogal]

Is this correction or the beginning of a Bear Market?

[NeoCaveman]

We hit correction -10%, and I believe we are headed towards bear market -20%

[Chgogal]

Hold your powder! Buying opportunity coming in the future.

80% of orders are sell.

[Jane Long]

It’s been entertaining, watching this one, today....

http://finance.yahoo.com/q;_ylt=AidnVL2XlnMsaPdEecmaFB1.FJF4;_ylc=X1MDMjE0MjQ3ODk0OARfcgMyBGZyA3VoM19maW5hbmNlX3dlYl9ncwRmcjIDc2EtZ3AEZ3ByaWQDBG5fZ3BzAzEwBG9yaWdpbgNmaW5hbmNlLnlhaG9vLmNvbQRwb3MDMQRwcXN0cgMEcXVlcnkDQUFQTCwEc2FjAzEEc2FvAzE-?p=http%3A%2F%2Ffinance.yahoo.com%2Fq%3Fs%3DAAPL%26ql%3D0&uhb=uhb2&fr=uh3_finance_vert_gs&s=AAPL