Thread: Dow Jones plunges 1,068 points, Wall Street bloodbath intensifies

Wall Street is reeling from a worse-than-expected bloodbath this morning.

Market snapshot at 3:20am (Thai Time):

• AUD: 79.08 US cents, 56.46 British pence, 63.71 Euro cents, 86.67 Japanese yen, $NZ1.08
• US: Dow Jones -3.7pc at 24,570, S&P 500 -3pc at 2,680, Nasdaq -2.4pc at 7,064
• Europe: FTSE -1.5pc at 7,335, DAX -0.8pc at 12,687, Euro Stoxx 50 -1.3pc at 3,479
• Commodities: Brent crude -1.8pc at $US67.32/barrel, spot gold +0.5pc at $US1,339.31/ounce, iron ore +1.8pc at $US75.70/tonne

What happened on Wall Street?

The Dow Jones index has plunged by 1,068, or 4.2 per cent to 24,453.
Since Friday, the Dow has plunged by more than 1,700 points in two trading days.

US stocks are continuing to be dragged down by a fast rise in interest rates, with US 10-year bond yields reaching a four-year high.
The broader S&P 500 also tumbled 4.2 per cent to 2,646, and the Nasdaq fell 3.6 per cent to 6,981.

Every S&P sector has been smashed, with energy and financials being the worst performers by far.
Energy stocks like Exxon Mobil tumbled after oil prices fell sharply overnight.

Brent crude has fallen to $US67.50 dollars a barrel

The big banks Citigroup, Goldman Sachs and Bank of America have dropped by up to 2.5 per cent each.
But it was Wells Fargo which fell the hardest — falling by 8 per cent, making it the weakest S&P stock.

This was after the Federal Reserve forced Wells Fargo to replace four directors.

In addition, the Fed is restricting the bank from getting any larger or richer until its "widespread consumer abuses" are addressed.

Here



Maybe 25,500 is the floor or a speed bump on the way down?


BTW, this has naught to do with Trump. Markets don't go up, or down in a linear direction for extended periods.

I'm just surprised that it took so long for the start of the correction.

The DOW was down @ almost 1,500 points at one stage.

Is inflation coming back, thus rate rises and the end of the easy money?


EDIT:- I wonder what will happen to BitCoin and the other cryptocurrencies today and over the coming days and weeks?

Originally Posted by Maanaam

Will Trump take credit for the fall? He was quick to take credit for any rises.

I had posted this earlier, elsewhere……….

Dow suffers biggest points fall ever - Today’s sell-off is truly historic, in one sense. - The Dow has never, ever, suffered a 1,500 plunge during a single trading session before. - And it has never before posted a quadruple-digit fall on a single day.: https://www.theguardian.com/business...-business-live

The Dow has swung more than 2,100 points in the last two sessions, a decline pushing more than 8 percent and shattering long-term momentum.

One of the big worries is that the Federal Reserve, under new chairman Jerome Powell who was officially sworn in Monday, will accelerate interest rate hikes and slow the economy.

Bond yields are rising as the Federal Reserve trims its U.S. bond holdings. The U.S. Treasury is also having to borrow more money, partly because of the tax cuts, and issuing more debt tends to raise yields.

The stock market has lost $1 trillion in value in the first five days of February.: https://www.washingtonpost.com/busin...=.d7934011a24f - https://moneyweek.com/prices-news-charts/dow-jones/

Trump Appointee Jerome "Jay" Powell To Take The Helm At US Federal Reserve - Perhaps the wealthiest Fed chair ever, Powell -- who turns 65 on Sunday -- succeeds Janet Yellen, who ends the first and only term held by a woman.: https://www.ndtv.com/world-news/us-p...eserve-1808352

Winning!

What happened on Wall Street?

The tech-driven Nasdaq was hit hardest, down 0.9 per cent.
The broader S&P 500 index pulled back to finish 0.5 per cent lower — though it rose as much as 1.2 per cent earlier in the session.
This was its biggest one-day reversal in two years.

Most S&P sectors posted losses, with energy (-1.7pc) and technology (-1.6pc) being the weakest performers.
Energy stocks were dragged down by a 2.4 per cent plunge in oil prices overnight.

As for the blue-chip Dow Jones index, it also experienced a sharp pullback.
By the closing bell., the Dow had shed 0.1 per cent (19 points).
It rose by as much as 381 points at its peak, but also fell by as much as 127 points at its lowest ebb.

Wall Street lost steam in afternoon trade, after US 10-year Treasury yields rebounded to 2.836 per cent (their highest levels in four years).
The spike in bond yields and the prospects of of rising inflation are what triggered the market sell-off in the US last Friday, which then spread worldwide.

Traders were still bracing for further volatility in the near future, as they tried to determine if the wild swings
these past few days were the beginning of a deeper market correction, or just a temporary blip in the US market's nine-year bull run.

Over the past week, stock markets around the world have lost about $US4 trillion from the global sell-off — which is
about 44 times more than Bill Gates' total wealth.

European stock markets finished higher overnight, snapping a seven-day losing streak.
The London, Paris and Frankfurt indexes gained between 1.5 and 2 per cent.

Here

Dow Jones plunges over 1,000 points as Wall Street and European sell-off deepens



Once again, rising interest rates are behind the continuing market wipeout — with US 10-year government bond yields lifting as high
as 2.88 per cent, its highest level in four years.

Investors are also concerned about the prospect of higher inflation as the US economy strengthens.

Market snapshot at 8:00am (AEDT):

• AUD: 77.82 US cents, 55.98 British pence, 63.55 Euro cents, 84.84 Japanese yen, $NZ1.08
• US: Dow Jones -4.2pc at 23,860, S&P 500 -3.75pc at 2,581, Nasdaq -3.9pc at 6,777
• Europe: FTSE -1.5pc at 7,171, DAX -2.6pc at 12,260, Euro Stoxx 50 -2.7pc at 3,361
• Commodities: Brent crude -2.1pc at $US64.16/barrel, spot gold -0.1pc at $US1,317.11/ounce, iron ore +0.2pc at $US77.32/tonne

Volatility surges

The blue-chip Dow Jones index closed 4.15 per cent lower at 23,860.

In the final hour of trade, the S&P 500's and Nasdaq's losses deepened to 3.75 and 3.9 per cent respectively.

US market volatility jumped by 27 per cent overnight, with CBOE'S volatility index (VIX) rising to 35.17.
The measure for market anxiety has more than doubled since last Friday — prior to the mass sell-off when the VIX index
was at the relatively low 14.3

Furthermore, the London, Paris and Frankfurt indexes tumbled overnight, with falls between 1.5 and 2.5 per cent.

During the European session, the Bank of England voted unanimously to keep British interest rates on hold.

But the UK central bank warned rates may need to rise sooner, and by more than it had previously expected, due to an
improving global economy.

Here

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Australian Rate Outlook ...

Reserve Bank governor rules out interest rate hikes until wages rise

The Reserve Bank governor has dismissed any chance of a rate hike any time soon, after a week of financial turmoil
sparked by fears of rapidly rising inflation and interest rates in the United States.

Philip Lowe said the recent market volatility would not have any impact on the growth outlook for Australia, which
remains at "a bit above 3 per cent over the next couple of years".

Here

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I still recon the first support level is @ 25,500 and, if that succombs, 1,000 points lower @ 24,500 (approx).

Heaven forbid if the 50 day MA crosses over the 200 day Moving Average.

Personally, I'm in cash and have been since Brexit. Missed some of the gains, but sleep easy.

My superannuation, once the ASX200 hit 6,000 went also into conservative assets.
It hit 6,000 May 1 2017 (sell in May and go away and all that) and then Yo-Yo'ed down but reversed and
hit 6,000 just before Christmas (Santa Rally and all that).

I'm keen to get back in to the Market once the froth and bubble has popped.

Apart from growing debt issues in the World's major economies, the larger economies are in reasonable health.

IMHO