Thursday, 13 December, 2018

Markets Right Now: Stocks open mixed on Wall Street

Markets Right Now: Stocks open mixed on Wall Street Markets Right Now: Stocks open mixed on Wall Street
Melissa Porter | 09 February, 2018, 12:24

Stocks rallied on Wednesday, with the Dow closing up 567 points, or 2.3%.

Tom Martin, senior portfolio manager with Globalt Investments, said he didn't see anything specific moving the market lower Thursday, just a continuation of a shift in investor mindset from fear of missing out in a rising market to worry of clocking big losses in a market that's turned south. The benchmark rate was trading around 2.85% Thursday afternoon. By closing at 23,860 points, the Dow Jones industrial average was set back to its level on November 17, 2017, and officially corrected.

Stocks plunged again Thursday, and for the second time in four days the Dow Jones industrial average sank more than 1,000 points.

The previous holder of that dubious honor was September 29, 2008, when the Dow dropped 777.68 points after the first version of the TARP bailout program failed in Congress. The S&P 500 tanked 100 points to 2,581, off 3.75 percent from the previous day. In the last two trading sessions the market wiped out January and started going into Decembers gain also.

This is how many stocks in the S&P 500 index have already lost at least 20% of their value in the midst of this sell off, according to CNBC.

The benchmark Standard & Poor's 500 index is now down 8 percent from the record high it set January 26. That means they are in what is known on Wall Street as a "correction", their first in nearly two years.

Even the most bullish of market strategists will say a correction is ultimately healthy for a market because it removes some of the froth and speculation.

US market indexes were lower Wednesday.

At 10.53am ET (9.23pm IST) on Wednesday, the Dow Jones Industrial Average was up 249.57 points, or 1%, at 25,162.34. Those stemmed from the USA jobs report on Friday (Saturday NZT).

Some investors are urging clients not to panic over the Dow crash, saying it's the market correcting itself after the market surged to record highs last month. On the Nasdaq, 1,596 issues rose and 1,056 fell.

Some analysts stressed that the economy remains strong, noting that the markets are fickle and have always been vulnerable to fears of what is to come.

"However once this kind of stampede starts it's hard to stop".

Among the biggest fallers Tuesday was Tokyo's Nikkei 225 stock average, which ended 4.7 percent lower at 21,610.24, having earlier been down a massive 7 percent.

The FTSE 100 fell 1.5% after the Bank warned rates could head upwards sooner and faster than previously thought.

"It's the end of complacent markets", says Stephen Janachowski, president and CEO of wealth management firm Brouwer & Janachowski in Mill Valley, CA.

Coupe said the volatility is rising because investors are undecided whether stocks or bonds are the better bet at the moment. Treasury yields were flat today while the stock market plunged.

"Now that everybody is on edge, you're going to see the volatility swing in both directions, ” Lancz said".

Monday's decline was 4.6%. The last fall of that size came in August 2011 when investors were fretting over Europe's debt crisis and the debt ceiling impasse in Washington that prompted a U.S. credit rating downgrade.