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 am surprised to see you are the only post about this ...and with no comments. Would love to know why this happened.
RE: Would love to know why this happened.
I can think of the following reasons:
1) The Stock Market went up TOO HIGH TOO FAST and now it is trying to reach its reasonable valuation level.
2) Interest rates ARE going up and money is flowing out of stocks into cash.
Ouch! that one hurt. At least in the short term.
3) The deep state is going down and is going to bring EVERYTHING down with them.
Guy on the radio (listening to Hannity and in between there’s the news) says it’s because the economy is “too hot” (too good), and also because we didn’t have our annual 10% correction last year. Some economist says it’s an inevitable and healthy correction, and that the market will be even stronger for the rest of the year.
The feds have been furiously increasing rates after flat lining them to near zero under Obama. Yellen’s work to undo Trump. The same was done during the Reagan years and leas eventually to Bush Sr losing the elections
European stock markets dive as global sell-off continues ,it not just the US ,D’oh
And with what is going on in D.C....THAT is a uncertainty.
In my mind..it is a combo deal. The "M" was due for a pull back...and the D.C. mess.....
I actually bot some issues today...........
It is exactly what anyone would expect after the sell off on Friday. Now, all we can do its await the Market Correction and see how low it will go.
The establishment is clearly sabotaging the stock market in order to destroy President Trump’s strongest weapon....his successful impact upon the economy....
Janet Yellon raises interest rates on her last day & the market tanks.....
Who ran the market up so high so fast? Strictly pump & dump....
Who cares if the BIG BANKS like Wells Fargo are losing money.....they got it free from the FED in the first place & have made HUGE GAINS on money members of the FED created out of thin air & loaned to themselves.....?!
Looks like Soros & Buffett want to mess with Trump.
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.
ALL the rest of his chest-beating was fine, IMO.
It was due for a correction.
Over-due, really.
I’m not worried about it. Let me know when the market takes a 10%+ dive in a single day or we start to near only 20K on the index.
“I am surprised to see you are the only post about this ...and with no comments. Would love to know why this happened.”
No surprises here.
the only thing that happened is that the market is correcting itself as it is designed to do after a period of Irrational Exuberance.
Went just went through one of the top three BULL MARKETS in our history. It was due for a correction.
Hang on!!!
Flash Crash
“Looks like Soros & Buffett want to mess with Trump.”
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