The Dow is tumbling and Nasdaq nears correction because stock investors don’t see a Christmas rally

[libertybele]

The Dow is tumbling and Nasdaq nears correction because stock investors don’t see a Christmas rally coming

There is a pervading sense on Wall Street that there may be little this week to counter an onslaught of selling ahead of Christmas.

Markets were trading sharply lower Monday to start a truncated week of trading, a period that is notoriously known for thin volumes, which can lead to outsize price swings.

The Dow Jones Industrial Average DJIA was down more than 600 points, the S&P 500 index SPX was off 1.7% and the Nasdaq Composite Index COMP was trading 1.6% lower bringing it down over 7% from its Nov. 19 record close and putting it in range to mark a 10% correction.

Concerns around the spread of omicron and further COVID lockdowns and new travel restrictions in parts of the world, however, were raising concerns that the market might be headed for a particularly downbeat trading stretch, with little support expected from monetary policy nor fiscal support from the government on the way soon.

Lending some support to that notion, President Joe Biden’s nearly $2 trillion spending plan was in dire straits after Sen. Joe Manchin, D-W.Va., said on Sunday that he cannot support it—potentially handing Biden and Democrats a major political loss and creating doubts about the degree of fiscal stimulus that the economy and markets could see headed in to 2022. ............

https://www.marketwatch.com/story/the-dow-is-plunging-and-nasdaq-nears-correction-because-stock-market-investors-dont-see-a-christmas-calvary-coming-to-the-rescue-11640017260?mod=home-page

[berdie]

I can't help but wonder how much of the recent fluctuation is due to day traders trying to make profits.

[libertybele]

I can't help but wonder how much of the recent fluctuation is due to day traders trying to make profits.

Perhaps, but I think it has to do with several things; shipping issues, vaccine mandates, Joe's threats of winter deaths, etc. None exactly instills any confidence in our economy.

[Hoodat]

Perhaps the stock market is overvalued due to the government printing up money for the past 13 years.

[Free Vulcan]

I think we could be at a major top, and I don't think January will be pretty.

Don't be distracted by all the smoke - this market is just simply overbought and needs a good 25%+ correction.

[libertybele]

I think we could be at a major top, and I don't think January will be pretty.

Don't be distracted by all the smoke - this market is just simply overbought and needs a good 25%+ correction.

Sure the market may be overbought and a correction may be warranted, but with rising inflation, loss of energy independence, vaccine mandates, threat of lockdowns, and Joe's increasing unpopularity, I believe accounts for some of the decline.  Consumer confidence is gone. Let's Go Brandon, is being chanted from coast to coast for a reason.