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 ...
The Fed’s unprecedented action against Wells Fargo was very poorly timed, considering the serious selloff we had on Friday. The Fed should have delayed that action until the financial markets stabilized. The Fed’s hawkish statement released last week talking about “further rate hikes” was completely unnecessary and just destabilized the markets. That’s two serious mistakes by the Fed in two weeks. They need to get their act together over at the Fed. It’s time for Trump to have a talk with Fed Chairman Powell and tell him to make sure the Fed doesn’t disrupt the markets again with stupid mistakes.
Math Morons don’t understand that citing “largest point drop” is false reporting because market declines are more correctly measured in terms of PERCENTAGE DROPS.
This article said last Friday’s decline of 666 points on the DOW only ranked 538th in the list of historical PERCENTAGE DECLINES:
https://seekingalpha.com/article/4142967-dows-6th-largest-drop-ever
Looking forward to a measure of the percentage ranking of today’s loss.
Here are the 20 largest declines:
https://en.wikipedia.org/wiki/List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Average
Today doesn’t even rank in the top 20.
Trump should distance himself from bragging about the market. I knew this was going to happen. He should have qualified his boasts about the markets by saying that “declines will happen, but the market has been rallying.”
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..
Tin Foil Hat Alert!!
ETF auto-selling kicked in. Auto-buying kicked in at -1500.
Market correction is all. Just sit tight.
I can’t believe it took six posts before the conspiracy theory emerged. It was the Deep State everyone. Not sure how they did it, but they control everything, so it probably wasn’t hard. The Deep State.
Such political motivations need to be punished by this administration and severely.
I know.. It’s a tad too coinky-dinky.
Oh I’m not jumping out of a building! I made a prophetic dump of Apple before their quarterly report and it’s paying off in spades :)
My 401k isn’t faring so well at the moment...
From the article: "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."
When the market gets overheated, like it has this last year, the slightest hint that the market is about to trunaround or drop in equity prices, the investors come out and sell to take their profits while they can.
The drop in stocks at the end of last week, was a signal for many investors to sell.
This is not unanticipated at some point. Realistically, the stock market can't keep going up and up and up, without cooling down occasionally.
It happens in the housing market too like it's done several times in my career.
According to CNBC, the biggest institutional trade in the past 6 months has been shorting the VIX. In the past week, the VIX has gone from from 9 to 33, so a lot of margin calls have gone out.
The talking heads suspect that some institutional trader or fund got their portfolio liquidated when a margin call came in that couldn’t be met. Huge amounts of stock can be dumped on the market when that happens.
Where is George Soros?
George Soros is worth $7 or 8 billion.
The Equities Market is valued at almost $100 trillion.
How does a guy with $7 billion control a market of $100 trillion and if Soros could actually control the markets, why is he only worth $7 billion?
One of my accounts with half of my holdings was up over 30% YTD!! I was uncomfortable with that level of return. I actually welcome some pullback.
It’s a buying opportunity. That is all.
The error is in assuming that he’s only worth $7bn.
That’s just the amount he declares to the tax collectors.
Your injecting logic. That’s crazy talk. ;<)
“Such political motivations need to be punished by this administration and severely.”
What political motivations are controlling the market?
When the economy heats up, the Fed tightens money supplies with higher interest, as a shield against inflation. It’s happened before. I’m surprised it took this long. Been posting about it off and on for a few months.
Ok, suppose Soros is worth $20 billion.
How does he control of market valued at $100 trillion?
Yea, I was up 38% on a 401k. That’s nuts.
I expected this at some point. It is tied to the fed and 3 rises in interest forecast. Money taking is all.
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