Posted on 02/02/2018 1:06:28 PM PST by SeekAndFind
The Dow Jones Industrial Average tumbled by more than 650 points in the biggest plunge since Donald Trump’s election, as a rout in the bond market spilled into equities.
It plummeted to 25,512, falling 674 points, or 2.6 percent, as the markets finished their worst week in two years.
Strong jobs data that increased the likelihood the Federal Reserve will lift rates next month sent bond bulls scurrying and rattled equity investors who haven’t seen a week this bad in two years. The selling accelerated after Dallas Fed President Robert Kaplan suggested more than three hikes may be necessary this year. The 10-year Treasury yield popped above 2.85 percent for the first time since January 2014.
“Yields have risen, inflation evidence is rising rather broadly. It’s that combo of factors that’s starting to mount,” Jim Paulsen, chief investment strategist at Leuthold Weeden, said by phone. “And then you get a report, and that’s the straw that breaks the camel’s back, and that’s kind of what we got into today.”
There was nowhere to hide on the stock market, with all 11 S&P 500 sectors lower. The index’s five-day rout topped 3 percent -- marking its first pullback of at least that much in a record 404 days. Energy shares sank 4 percent as earnings disappointed and crude slumped. The tech selloff worsened, sending the Nasdaq 100 Index lower by 1.5 percent. It’s on track for the worst week since February 2006. Not even a record rally at Amazon.com Inc. could rescue the measure, as the world’s biggest company, Apple Inc. hit its lowest since October.
(Excerpt) Read more at chicagotribune.com ...
Evidence of bias: “the biggest plunge since Donald Trump’s election”
The almighty Deep State’s payback against Republicans and Trump for releasing the memo. No coincidence here.
The Markets have been over-valued for a couple of years.
I believe it was, cali.
Chuck and Nancy are probably elated?
Buying Opportunity.
Buy! Buy! Buy!
Inflation.
Deep state
>>The almighty Deep State’s payback against Republicans and >>Trump for releasing the memo. No coincidence here.
Yup.
Look at Drudge.
DOW -666
Satan rears his ugly head
I’d really like to see the markets roll back a lot to match the economy. Then they can both rise together.
Everybody's buying? Then sell, sell, sell!
Waiting for the Democrats to blame this on the release of the FISA memo.
Tis but a scratch...
There are many reasons that boasting about market movements and using it to “prove” that economic policies are working is not a good thing to do .
Firstly, Presidents or Congress don’t actually control the “animal spirits” of equity markets.
Secondly, Equity markets don’t necessarily reflect the underlying health of the economy.
Thirdly Markets can also go down for various reasons ( such as they were overvalued), making it risky to benchmark your administration’s success to stock prices.
Now I’m as dumb as a box of rocks when it comes to the stock market, but wouldn’t this be a normal (or so) correction?
Seems like this is when the smart people buy?
Not out of the realm of possibility. Markets do not like uncertainty.
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