Dow falls 832 points in third-worst day ever

The Dow plunged nearly 832 points on Wednesday, the third-worst point decline in history.

All 30 Dow stocks were in the red, sending the index below 26,000 points for the first time in a month. The index fell by more than 3%.

The S&P 500 posted its fifth straight decline, plummeting nearly 3.3%. And tech stocks got hit particularly hard. The Nasdaq dropped more than 4% in the worst percentage decline since June 2016.

Stocks are in the midst of a scary October slump, sliding sharply because investors are worried about rising interest rates.

October has often been a nerve-racking month for investors, and this month is living up to that reputation. All three indexes are in the red this month. But the Nasdaq has really taken it on the chin: It has plunged nearly 8% already in October.

The Dow’s point decline was the worst since February, when the index fell by more than 1,000 — twice. The Dow’s percentage decline doesn’t crack the top percentage declines. The index fell 23% in 1914 and on “Black Monday” in 1987.

Tech is taking its lumps because bond yields have climbed in recent weeks, hovering at a more-than-seven-year high.

Although that’s largely because the US economy is so strong, the spike in rates for the benchmark US 10-Year Treasury has investors wondering if the near-decade-old bull market may finally be ending.

Higher long-term rates could slow down red hot sectors of the economy, including technology, especially as the Federal Reserve seems intent on raising short-term rates for the foreseeable future. Higher rates increase borrowing costs, pinching corporate profits.

Investors may want to shift out of momentum and into more defensive stocks — companies that aren’t as expensive and also pay healthy, stable dividends.

Continued worries about a slowdown in China’s economy — especially as trade tension with the United States has escalated — were also dragging down the broader market.


dont say there have been no warnings..those tech stocks are a massive bubble..

this was also warned about repeatedly:

“Stocks are in the midst of a scary October slump, sliding sharply because investors are worried about rising interest rates.”

once the fed started a trend up it was the signal..


~ by seeker401 on October 11, 2018.

7 Responses to “Dow falls 832 points in third-worst day ever”

  1. […] Source: Dow falls 832 points in third-worst day ever […]

  2. What is interesting is only a 3% fall. I can not find a large enough chart that measures historical % drops. 3% does not make the top 20 and probably does not make the top 50 or more.

    Also of note, the article threw in China’s impact on the global economy.

  3. HUGE:

    “China goes even more global this weekend. Love ’em or hate ’em, on Saturday Oct. 1, the Chinese yuan joins the International Monetary Fund’s currency basket. Once the yuan is a full fledged member of the IMF’s Special Drawing Rights, it becomes a currency worth holding at every single emerging market central bank holding foreign currency reserves. That’s a few billion yuan, on the low end, of demand for the Chinese currency…automatically.

    “Even though the yuan is not an immediate threat to the U.S. dollar’s dominance in world trade, nor as a global reserve currency, the yuan’s official entrance makes it the newest, liquid safe haven. Moreover, unlike the yen and the euro safe havens, this one actually has yield.

    “The yuan is expected to replace the Great Britain pound and Japanese yen in trade settlement within the next few years, according to SWIFT.
    It won’t replace the dollar, but Asian nations that trade in commodities with the Chinese will increasingly price their goods in yuan.”

  4. we said same day than

  5. & we said this too much watch just listen put it in the library too

  6. The stock market is overdue for a one-day 5% or 10% plunge

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