Sunday, 09 December, 2018

US Stocks Rise After Opening Sharply Lower

US Stocks Rise After Opening Sharply Lower US Stocks Rise After Opening Sharply Lower
Nellie Chapman | 07 February, 2018, 03:11

US stock futures pointed to a third day of losses at the opening on Tuesday, deepening a correction to the stock market's long-running rally that saw the biggest intraday fall in history for the Dow Jones Industrial Average on Monday.

On Monday, the Dow Jones Industrial Average declined 4.6 percent to 24,345.75 points.

The Dow also set an intra-day record drop of 1,600 points and at one point fell 800 points in a span of just 10 minutes.

The financial, healthcare and industrial sectors fell the most, but declines were spread broadly as all major 11 S&P groups dropped at least 1.7 per cent and all 30 of the blue-chip Dow industrial components finished negative. It was the Dow's biggest daily point decline ever.

While some debate remained about the catalyst for the losses, which began last week, few doubted that a stock market correction was now well under way as the Dow's cumulative losses in the past week exceeded 8%.

Despite these large drops, the stock markets have been rising for about nine years now, and many analysts say it's time to hit the pause button.

The market's sharp drop began on Friday as investors anxious that creeping signs of higher inflation might push the U.S. Federal Reserve to raise interest rates more quickly, which could slow down economic growth by making it more expensive for people and businesses to borrow money.

In early Europe trading London's FTSE 100 was down 3.5 percent at 7,081 points.

United States stocks are experiencing their worst week in two years.

"We see greed when the market is up, we see fear when the market is down so we can't let our emotions get involved in our investing", said LeMere. "Let's see what tomorrow brings, but again we have to look at how good the market has been and we can't let one day ruin that and we have to stick to our long-term strategy", said LeMere.

Traders worked the stock exchange floor Monday as the Dow saw a historic points drop. Japan's Nikken was off 4.73%, while China's Hang Seng Index fell more than 5%.

Asian markets, on the other hand, have benefitted from record low United States interest rates in the last decade because money has flowed into Asia in search of stronger returns.

The question for investors is whether the turbulence is a sign that the long bull market is over.