Dow falls another 500, then recovers — Markets Right Now


A correction is a 10% decline in stocks from a recent high.

But Naeem Aslam, chief markets analyst at Thinkmarkets, believed automated trades - which kick in to reflect sharp market movements - contributed to the steepest declines. Virtu Financial LLC now owns 44,686 shares of the exchange traded fund's stock valued at $2,418,000 after purchasing an additional 42,175 shares during the last quarter.

Traders work on the floor of the New York Stock Exchange in New York City on Tuesday. "We didn't see any of the typical conditions you get for a top". And this is entirely what you would expect when you have a massive deficit like we currently do, and it's certainly what you'd expect when you finance tax cuts by adding even more to the deficit. Investors remain fearful that signs of rising inflation and higher interest rates could bring an end to the bull market that has sent stocks to record high after record high in recent years.

Asia stocks rebounded on Wednesday following gains on Wall Street as a sense of calm returned to global markets.

Overall global demand for gold jewelry weighed in at 2,135.5 tonnes (up from 2,053.6 tonnes in 2016), helped along by improved offtake in India (up 12 per cent to 562.7 tonnes) and China (at 646.9 tonnes and a gain of 3 per cent), based on estimates by the World Gold Council (WGC).

All other regional markets were lower.

"People were positioned for more central bank easing or continued central bank easing, low rates, and importantly, low volatility", he said. With Tuesday's bounce, the Dow recovered about half the losses from the day before. At its lowest point on Tuesday, the Dow was off 10.7 percent from its Jan 26 record.

The market has been propelled mainly by low interest rates, rising corporate earnings and economic growth both in the United States and abroad.

The Fed did come down hard on Wells Fargo & Co (NYSE:WFC), one of the world's largest banks. "The market is a casino on steroids".

At 4pm on Tuesday, however, the FTSE 100 showed some recovery and was 123 points down or 1.68%. "Let's be clear - in the long span of financial history, this is not news".

And the advice is even less clear-show risk tolerance, but not too much, don't panic sell, but don't hold against common sense, etc. etc. Bromides, bromides, bromides. So I reached out to Jacob Kirkegaard, a senior fellow at the Peterson Institute for International Economics, for some broader context.

Biggest one day percentage loss - October 19, 1987, the Dow closes down 22.61%.

Monday's decline was 4.6%. The euro was trading at $1.2384.

I keep hearing the term "circuit breaker".

The Dow's free fall Monday, which erased its gains for the year, caused a rift in global trading Tuesday - with the Stoxx Europe 600 dipping 2.2 percent and markets in Japan and Hong Kong falling about 5 percent. "It takes away what many considered to be easy money". For one thing, a new Federal Reserve chairman, Jerome Powell, took over yesterday, and the market has a way of testing new leaders with significant drops.

The company also recently declared a monthly dividend, which will be paid on Monday, February 12th.

By lunchtime, Ryanair and AIB were down 0.92 per cent and 1.51 per cent respectively and were the most traded stocks after the morning session.

May 7, 2013 - The Dow closes above 15,000 for the first time. The swings came one day after the steepest drop in 6 ½ years. As long as inflation doesn't spike out of control, stocks can rise if earnings continue to grow.

That means stocks are now cheaper, but the value of retirement and investment accounts has dropped - making Americans poorer, at least on paper.

Charles Dow created the Dow Jones Industrial Average.