The Briefing Room
General Category => Economy/Business => Topic started by: SirLinksALot on February 02, 2018, 09:10:03 pm
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SOURCE: CHICAGO TRIBUNE
URL: http://www.chicagotribune.com/business/ct-biz-dow-jones-stock-market-falls-20180202-story.html (http://www.chicagotribune.com/business/ct-biz-dow-jones-stock-market-falls-20180202-story.html)
by Jeremy Herron
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.â€
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 above link ...
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This ought to get the nuts wound up....
(https://i.imgur.com/WYGrzUF.jpg)
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If the market drops like today 3 or 4 more times consecutively, then it’ll be something.
Otherwise, it's just a normal correction for an already over bought market.
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20 years ago a 600 point swing meant something. Where the Dow is now this is nothing.
BTW this has nothing to do with the FISA news today. The Fed is going to jack interest rates because the economy is doing TOO good. Bonds are taking a hit too.
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Absolutely true. The market is three times what it was 20 years ago when 500 points was a big deal.
It's was also hugely overbought and in need of correction. Ray Charles could have seen this coming.
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Trump's been taking credit for this run up.
Will he take ownership too if we see. a 40% correction?
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Trump's been taking credit for this run up.
Will he take ownership too if we see. a 40% correction?
He actually might. He lies about other things and claims credit for fake stats..
Why can't he just brag about the stock market even if it goes down in the real world?
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Just saw a local news report which said this drop is "the worst since President Trump took office."
Um...no...worst maybe since 2008. Trump wasn't president then.
Already blaming Trump for the drop,
This was not unexpected. Last year I heard a "correction" was imminent. When it didn't happen, the pundits said it would happen this year.
Seems logical the market would fall given the fantastic rise of the Dow. What goes up must go down.
Just so people don't panic and the government doesn't try to fix things.
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Just saw a local news report which said this drop is "the worst since President Trump took office."
Unless I am misreading this, that actually is accurate
Barack Obama had some pretty steep drops during his watch. A couple years ago there was 1000. Drop
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Unless I am misreading this, that actually is accurate
Barack Obama had some pretty steep drops during his watch. A couple years ago there was 1000. Drop
The implication I got from the report was that the steep drop was somehow caused by Trump. It wasn't... just as the meteoric rise in the stock market wasn't Trump's doing either.
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20 years ago a 600 point swing meant something. Where the Dow is now this is nothing.
BTW this has nothing to do with the FISA news today. The Fed is going to jack interest rates because the economy is doing TOO good. Bonds are taking a hit too.
The Feds will jack rates as we have a new Fed chief who knows they have been held down far too long.
I certainly would not go big on bank stocks in the near term, as they have been juiced up a long time by these low rates.
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He actually might. He lies about other things and claims credit for fake stats..
Why can't he just brag about the stock market even if it goes down in the real world?
A 40% correction will still be a positive gain in the real world as it has gone up 44% since he was elected.
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Don't sweat it. This is a "normal" dip. Now only -186.94 on DJIA, Nazzie -47.65 S&P --19.87. But moving in both directions quickly. Now DJIA -247.10. It is a bumpy ride right now.
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A 40% correction will still be a positive gain in the real world as it has gone up 44% since he was elected.
No, that would amount to a 14.6% loss.
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No, that would amount to a 14.6% loss.
You are absolutely mathematically correct. Thanks for reminding me the percentages upward do not correspond to those downward.