Posted on 10/10/2018 12:37:22 PM PDT by BradtotheBone
Stocks sank on Wednesday as a steep decline in tech shares and worries of rapidly rising rates sent Wall Street on pace for its worst day in six months.
The Dow Jones Industrial Average traded more than 600 points lower as Intel and Microsoft fell more than 2.5 percent each. The Nasdaq Composite plummeted 3 percent.
The S&P 500 dropped 2.5 percent, with the tech sector underperforming. The broad index was also headed for a five-day losing streak — which would be its longest since late 2016 — and fell below its 50-day moving average, a widely followed technical level.
Both the Dow and S&P 500 were also on pace for their worst day since March.
The major indexes have fallen sharply this month. For October, the S&P 500 and the Dow are down more than 3.6 percent and 2.5 percent, respectively. The Nasdaq, meanwhile, has lost more than 6.5 percent.
Rising rate fears and a pivot out of technology stocks have made it a rough last few days. The Dow has dropped four of the last five sessions, losing nearly 900 points over that span.
Shares of Amazon declined nearly 4 percent on Wednesday, while Netflix slid 6.3 percent. Facebook and Apple also fell more than 2 percent each.
"People are getting out of the high-flying tech names right now," said Larry Benedict, CEO of The Opportunistic Trader. "I think people are under-hedged; there could be more pain ahead."
(Excerpt) Read more at cnbc.com ...
This was news to anyone?
“Hey, we’re losing all our g........ money, and Christmas is just around the corner, and I ain’t gonna have no money to buy my son the G.I. Joe with the kung-fu grip, right? And my wife won’t make love to me ‘cuz I ain’t got no money, right?” So they’re panicking right now, they’re screaming “SELL! SELL!” to get out before the price keeps dropping. They’re panicking out there right now! I can feel it! They out there!”
Under my dollar-cost averaging program, my monthly investments are scheduled to be made on the 10th of every month — so this looks like it could be GOOD news for me!
We all know that the markets fluctuate. That’s not worthy of listing as a reason.
Your number three item at 3.25% doesn’t create a “very expensive” increase.
As for number two, I don’t know what that spike is, so I’ll leave it for someone else to address.
Billionaire democrats are tanking the markets...their “October Surprise’... Hang tight everyone - once the elections are over (and we’ve won) the markets will bounce right back.
Gold should be at least $2000/oz.
Well, humorously I don’t even know what that term means. I don’t have a finance background, but was just sharing my thoughts based upon what seems like common sense. Amazing what you can reason out when you think rationally (like a conservative) rather than just running around in an emotional lather (like a typical liberal).
I understand that the Fed’s actions are also causing concern about rising interest rates in general, and the cooling effect that could have on the economy. However, it seemed pretty apparent to me that investment capital always seeks wherever it can get the greatest return with the least risk, and therefore “pricing” bonds more competitively against stocks, especially given their higher stability and lower risk, has to be having an effect as well.
They just hiked rates 2 weeks ago.
Buy the dip, buy the crater.
My job is following political influences on financial markets. I’ve been doing it for 25 years and I am good at it. Fixing the proximate cause for a one day or one week move in the markets is a mug’s game. This economy is strong as hell. Tariffs are kicking in. Wage hikes are kicking in. Oil prices are poised for another upside breakout. There’s a lot of inflationary signals in the economy, and all the people on this thread who think that interest rates should not be going up in that context are just fools. Those higher rates long and short, have an impact on the outlook.
Actually a 10% correction at this level would be completely normal. The market has been hot as a pistol and needs a breather. This presents a nice buying opportunity.
The stock market has been at an all time high and then drops 3% and some people think it is some massive conspiracy.
Heck the Dow is still up 12% from where it was a year ago.
If people cannot handle stuff like this then they should not invest.
Neal Cavuto must be either giggling like a schoolgirl, or somberly proclaiming his worst fears are coming true, today. Some say the hurricane is to blame, but the market didn’t fall with the last one, like this. I know zero about economics, but I suppose hiking the interest rate doesn’t help. (Although it was kept artificially low on Obama’s behalf. Of course, he couldn’t affect much recovery with that help...because he’s an idiot and wants ruin.)
Take a look at the market’s performance over the last two years. This drop is shocking if looked at as a snapshot, but overall the markets have done very well.
Concur. Inflation is hidden and tame at the moment. How quickly people have forgotten the financial terror of rampant inflation and its devastating effect.
Absolutely correct that interest rate increases are justified. In fact, Trump totally predicted this in the 2016 campaign.
During that period Trump said interest rates needed to be raised back then and predicted that for political purposes that Ma Fed, Janet Yellen, would continue to protect Obama and not do so. Trump correctly predicted that the Feds would begin to raise rates during his term. We all knew the game and we all knew he was right.
A big dip? Yeah, but I’m not worried. Letting off a little steam is healthy and good for the market long term.
Profit taking before the risk that Dems take control of Congress.
Collecting those profits to give the market a chance to grow again.
Bingo, about the October Surprise aspect anyway. Remember who controls the big Wall Street banks and mutual funds and remember what they did at this time in 2008 to help get a certain racist idiot elected President.
When the market “corrects”, these chosen ones not only benefit their political party (hint: it ain’t our party) but also enrich themselves further.
Short selling, which is quite risky for ordinary investors, is risk-free (and incredibly lucrative) when you are 100% certain stock prices are going to drop — because you’re the ones helping cause those prices to drop.
They raised the interest rate. Nothing abnormal about that or the resultant flight from equities.
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