Correction or Omen? Dow plunges 531 points in global selloff

Stock Crash
August 2015NEW YORKStocks plummeted on global-growth fears for a second straight day Friday in a plunge that dragged the Dow industrials into correction territory. The global market rout pummeled stocks and commodities as fresh evidence emerged that China’s economy is slowing, spooking investors. The Dow industrials lost 530.94 points, or 3.1%, to close at 16459.75, putting it in correction territory, as defined by a 10% decline from a recent high. The S&P 500 dropped 64.84 points, or 3.2%, to close at 1970.89. The Nasdaq Composite fell 3.5%, or 171.45 points, to 4706.04. The Dow’s more than 1,000-point drop this week was the largest weekly drop since the week ended Oct. 10, 2008.
U.S. oil prices also briefly dropped below $40 a barrel on Friday, a level not seen since the financial crisis. Signs of a sharp slowdown in the world’s second-largest economy have unnerved investors since Beijing surprised markets last week by devaluing its currency. Shares in the U.S., Asia and Europe have tumbled, along with commodity prices as investors fretted about waning Chinese demand just as supplies are surging. The market turmoil has some traders exercising caution.
“You have a situation that’s tough to play,” said Christopher Cady, a New York-based trader. He said he closed out bets toward the end of the week that U.S. stocks would fall. “Nimble…is the new black.” The pan-European Stoxx Europe 600 ended the session 3.3% lower, closing out its biggest week of losses since August 2011. The index has now lost nearly 13% since its April peak, entering correction territory. Earlier, the Shanghai Composite Index tumbled 4.3%, hitting its lowest level since March, despite Beijing’s efforts to prop up the market in recent weeks. In Japan, the Nikkei fell 3% to a six-week low.
An early gauge of China’s factory activity fell to a six-and-a-half year low in August, heaping further pressure on stocks and commodities after Thursday’s global selloff. “Now we’ve had some harder evidence that China is slowing relatively fast, people have chosen to get out,” said Kiran Ganesh, a multiasset strategist at UBS Wealth Management, which oversees around $2 trillion of assets. A surge in investor demand for assets considered safest during times of market stress sent the yield on 10-year U.S. Treasury bonds to 2.042%, its lowest level since April. Yields fall as bond prices rise. The dollar fell by around 1% against the euro and Japan’s yen. The euro and yen have recently tended to rise during times of market stress. Some investors and analysts say they think the tumult in the markets could complicate the Federal Reserve’s plans to raise interest rates. –WSJ
This entry was posted in Age of Decadence, Apathy, Anger, Mistrust, Disillusionment, Austerity, Bankruptcy, Boom and Bust Cycles, Currency - Economic warfare, Economic Collapse, Economic Hardship or Loss, Fiat Money Printing Fiasco, Financial Market plunge, Financial market turmoil, Greed and Corruption, Hierarchal Control, Hoarding Gold, Hoarding Resources, Infrastructure collapse, New World Order, Resource War, Social Meltdown, The Pyramid Model, Troubled Banks, Unemployment rising, Unsustainable Debt Burden, Widening gap between rich and poor. Bookmark the permalink.

6 Responses to Correction or Omen? Dow plunges 531 points in global selloff

  1. Dennis E. says:

    You cannot shake your fist in God’s face and expect him not to react.

  2. niebo says:

    I agree with Whyte: it is both, and this is the beginning of the end; if they do not “killswitch” the market, our financial institutions may well be closed by the end of the week. I guess that depends on whether or not those in control of such things have hoarded enough precious metals to afford themselves a “soft” landing. The rest of us are on our own. It’s been a pleasure, Alvin. Thank YOU, sir, for your faithfulness.

    “Then shall the kingdom of heaven be likened unto ten virgins, which took their lamps, and went forth to meet the bridegroom. And five of them were wise, and five were foolish. They that were foolish took their lamps, and took no oil with them: But the wise took oil in their vessels with their lamps. While the bridegroom tarried, they all slumbered and slept. And at midnight there was a cry made, Behold, the bridegroom cometh; go ye out to meet him. Then all those virgins arose, and trimmed their lamps. And the foolish said unto the wise, Give us of your oil; for our lamps are gone out. But the wise answered, saying, Not so; lest there be not enough for us and you: but go ye rather to them that sell, and buy for yourselves. And while they went to buy, the bridegroom came; and they that were ready went in with him to the marriage: and the door was shut. . . .

    Matthew 25:1-10

  3. they wont raise the interest rates,instead they will start QE4

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