Stocks enter correction, Dow plunges by 780 points, as coronavirus fears multiply
Source: NBC News
Wall Street fell sharply on Thursday for the sixth straight day, with all three major indices entering correction as investor fears multiplied that the coronavirus epidemic could spread to the U.S.
A correction indicates a drop of 10 percent from the 52-week high.
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq all plunged at the opening bell, with the Dow falling more than 500 points for a loss of 2 percent. The S&P tumbled by 2.1 percent and the Nasdaq fell by 2.7 percent, marking the worst week for stocks since the financial crisis.
The declines accelerated in mid-morning trading, pushing the Dow down by around 780 points. The S&P and Nasdaq dropped by over 3 percent.
Read more: https://www.nbcnews.com/business/markets/stocks-enter-correction-dow-plunges-500-points-coronavirus-fears-multiply-n1144116
empedocles
(15,751 posts)SWBTATTReg
(22,156 posts)including myself. What 'up' market has ever gone on as long as this one has, for almost +- 11 years?
Perhaps the coronavirus was one of the last straw of the rump disaster in the WH? Perhaps all of the other idiotic actions by this president and the harm he's done to our overseas relationships and our economy finally sunk in?
Other things have been dragging the markets down (slowing manufacturing, higher inflation rates, somewhat higher loan rates, etc.) and perhaps all it needed a tiny push to go over the edge, after all, it's been a good ride and therefore, time to pull out.
Perhaps that's what some market makers did. Since the markets have been so 'fixed' and at the same levels literally for the last 2 or so years, give or take a thousand points, the spread hasn't been too good for those stock pickers and bankers who buy low and sell high (returns have been lousy), so those few who have made money in the last couple of years (where the markets seemingly always went up no matter what), saw their profits disappearing. Those who made money over the last couple of years sold their stuff and are running away as fast as they can.
Thing is, as more and more people pile on in selling, and trying to keep their profits, the markets start sliding down in response faster and faster (in response to a surge of more stock being offered for sale than normal). This is what is happening now. Kind of sad in a way that good decent people like us are losing money, but hopefully most of us took some off the table prior to all of this happening, as most reputable financial advisors recommend, e.g., if you made money, take some off the table periodically.
No one overseas is racing to help the US, why should they? After all, they have the coronavirus squarely in their headlights too, coming right at them. Rump has been moaning about all of the help that the US has provided the world, w/o pay, for decades, etc., so why should they even appear to be lending rump a hand? If I were them, I wouldn't. To be honest, I would be sick and tired of dealing w/ rump and his idiotic antics. It's time to let a grown man step in and take over (not pence though). This won't happen though, the world is too interconnected as it is (as we are seeing now, even with rump's isolationist leanings) and countries won't let each other go down as it could perhaps affect them too (drag them down too).
Squinch
(50,993 posts)onenote
(42,747 posts)It's still up over 7.5 percent from its 2019 low point in June.
Squinch
(50,993 posts)It was down over 780. It's come back a lot. As I write it's down 250.
onenote
(42,747 posts)The market has bounced back from its early low. Still too early to say where it will end up today.
ProudMNDemocrat
(16,786 posts)Trump did little to stem fears.
IronLionZion
(45,514 posts)with severe punishments for anyone in the medical community or media who mentions it.
If US is in recession by November, dude is finally finished.
Jim__
(14,083 posts)IronLionZion
(45,514 posts)where America corrects it's big mistake from 2016
SunSeeker
(51,662 posts)turbinetree
(24,713 posts)SunSeeker
(51,662 posts)brooklynite
(94,703 posts)Reacting to a market drop is probably the worst thing you can do. You might want to look at redirecting future investments, but trying to time the market is a horrible strategy.
denem
(11,045 posts)Did you react to market drops, or stay the course?
brooklynite
(94,703 posts)...when Bonds that we held matured, or when there was a conflicts issue with my wife's employment.
We've identified an asset allocation formula of cash, securities (small cap/large cap; domestic/foreign); bonds (short/medium/long term), commodities, REITS, and foreign currency. With the exception of one stock (Apple) and long term municipal (tax free) bonds, everything is in indexed mutual funds. If our holdings become out of sync with our allocation goals, we re-allocate future investments (we max out IRAs, 401ks and 457s and buy bonds with our cash), but never sell and then buy something different.
not_the_one
(2,227 posts)but the BIG $$$ knew a correction was needed. And this conveniently came along. At the first report of the virus they probably set the process in motion, and sold what they knew would go down.
You can bet they were ahead of the game, and are now , after completing the "dump" phase, ready to bottom feed, then restart the "pump" phase of the "cycle".
The (really) rich get even richer. Like I said, call me cynical.
brooklynite
(94,703 posts)It's been a while...
(if it makes you feel better, I'm a 1%er and I didn't get an advanced notice)
denem
(11,045 posts)bucolic_frolic
(43,258 posts)These are professional traders, with trading rooms of their own. One of them and I can't recall who, kicked around the number 21,600 the other night, was either Friday or Monday evening. That's almost 5,000 points lower from here.
This Corona news is about as good as the failure of Lehman or the collapse of the automakers. Nothing is manufactured locally, we all depend on parts from China or elsewhere. Things could come to a crawl.
Raftergirl
(1,292 posts)auto directed into husbands 403B account - but Ive been sitting on 6 figures in cash (and growing each month) since Donald got elected. Its the discretionary money I have left over each month that I morally would buy stocks with.
I dont mind losing out and I know Ill have the cash needed to help kid with down payment on a house if he needs it.
Skittles
(153,182 posts)and get a star
OnlinePoker
(5,725 posts)Down 9.72% since the beginning of January and down 0.84% since the same time last year.
denem
(11,045 posts)selling into the close.
scarytomcat
(1,706 posts)the lack of goods from medicine to armament parts that are not being made and shipped from China
All stop the economy of the world
We do not make stuff and the world will shut down this summer, fear is spreading and
dipshit does not know what he doesn't know
janterry
(4,429 posts)I wish the damn markets would just close already. Wow.
dhol82
(9,353 posts)Wonder what will happen tomorrow?