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 ...
Overdue correction.
Movement into cash to take advantage of surging economy.
Expect it to stabilize right around 24000, then come back up depending on Fed actions on interest rates.
This ain't Black Monday.
The market was very high..the highest in history..so if course, when something goes way up it drops a little bit..it stings, but its normal..the economy is doing GREAT so it’s not that..just a normal correction
the Deep State fights back.
In it for the long run ....... still making money.
HA! I was looking to move Thursday night but it was to late.
It takes 3 days for my 401 to switch. I am standing pat.
I was guessing April/May. Oh well.
The old October crash can happen anytime now. Good Luck.
What exactly does "furiously increasing rates" look like? I've gone back over the last 25 years, and I simply don't see it.
But it happened [for those who are still wonder] ... because Bull Markets ARE ALWAYS followed by a correction.
#1 is called a correction. I don’t mind as long as the %% aren’t as scary as the big numbers. Remember dives of 500 - 600 when the Dow was at 12,000 so it makes sense that at 25,000 we would see 1500 point swings.
#2 I’ve heard and read a drive by analyst. They Fed is manipulating interest rates. Stocks are dropping and Bonds are rising. A sure sign of pending interest rate squeeze.
Thing is, large companies have had record earnings so what’s happening today is based on the future 12-18 months from now. It was a hell-of-a-run throughout the year. Companies giving bonuses, dividends, investing in R&D and capital equipment costs. We’ll have to wait and see if the market bears fruit with what Trump has done.
I’m sure this will be used to tarnish Trump and I’m not so sure the plunges weren’t helped along by influential people wanting to see a Trump crash, or worse it could be anticipation of a global trade war and resistance about the USA not giving out lopsided trade agreements.
3) The deep state is going down and is going to bring EVERYTHING down with them.
—
That thought did cross my mind.
The best way for a young person to by stocks is by what you know and use..by a hundred shares and never sell it..
Companies that are just coming public..
your looking for an Amazon type company..
When I first got married went to a stock brokers seminar and he said if you do nothing by one share of Berkshire Hathaway..the price at the time was 600 dollars..
Should of paid attention..but I did not have 600 dollars..
i think it will go up again....’
DJT is improving the business climate, big time
a correction is due anyway, so be it... fine...
but in the longer term, so long as DJT terminates the Mueller farce and really does Drain the Washington Swamp
America’s economy and jobs will only go UP UP UP
“..Take a deep breath for pity sakes...”
LOL...good advice....and just about all that one can do right now.
I’m waiting for it to settle out, and then taking some cash from the cash side and doing some shopping for some good bargains, especially on dividend stocks.
And yes, it’s still better than a year ago, but another couple of mega-drop days like today and it won’t be.
I’ve been investing for a long time so I knew the market was ready for a major correction...no big surprise to me there. However, I’m not a fan of odongo’s “Yellin” or the FED in general. Necessary evil? Hopefully, now that the market has absorbed all this, it will settle out.
Yep. An opportunity to buy some calls.
So the market crashed...what? over 2,000 points in the 2 trading days since the memo came out! Over interest rates? What a crock! No way that’s a coincidence. It is/was due to correct, I agree, but that’s extreme
This is a punishment for the release of the memo.
I don’t see how the correction would be so extreme with the tax cut and all the big companies repatriating their capital.
Exactly.
It’s just a flesh wound.. nothing to see, move along folks,
Good points. I believe the rebound will be swift...just am PO’ed that I didn’t see it coming. Now’s a great time to buy if you were smart (not me) and took profits while the getting was good!
Let’s hope. I’d like to retire in a couple of years!
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