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 ...
Soon, I hope. ;)
Mere drops-in-the-bucket for those two gargantuan entities.
Well, the Chairman of the Fed just said we had a very vibrant economy, with low unemployment, growing GDP, and very low inflation.
I would not be at all surprised if the stock market rebounds by as much tomorrow and Friday. The fundamentals are sound--there's manufactured panic, but now is NOT the time to lose your head!
It sure does.. The Deep States last ditch effort to derail the Trump Train.
Market now down $830
I know.. When Brexit passed it was down 1000 points.. I said it would rebound in a day or two, which it did.
And he’s right. But monetary policy functions with long and variable lags. A very slow and gradual policy of moving rates back toward a neutral footing will not kill the economy at all, and that’s not the intention. But if you wait too long, you could have a problem, and might have to go much faster. No one wants that so they are raising rates, albeit at a snail’s pace. It’s the correct policy, and there’s no reason for them to stop.
Soros and the insiders are selling to move the market down
I haven’t made a negative comment on the rate hike.
I’m not convinced we needed one now, and he confirmed my reasoning with his statement.
Exactly.. FBN guests are running around like Chicken Little.
Wonder uf Obama will take credit for this dip.
Traditionally, biggest drops are in October. However, crashes don't happen in mid-term election years. This is a small correction, and the stock market will rebound and continue growing into next year. As you say, fundamentals are strong. As for next year 2019 in October, one might lose their head. But things are good for now.
LOL!
I don’t pretend to understand the equity markets, but I do know it went up and up breathlessly and so it is natural to have some profit taking pull backs.
Yep.. Actually expected them to pull this. I was going to invest last week, but then thought.. Nah.. better wait.
Hedge funds should be banned but for entirely different reasons. They tend to not beat the market and just make huge salaries for today’s Madoffs.
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