FYI: The S&P 500 ended at -1.7% to 2658, after earlier falling nearly 3% and breaching the 2637.68 level that would place it 10% below its last record. That would put it in correction territory for the first time since February’s selloff.
The Nasdaq Composite fell 2.0%, paring much of Thursday’s rebound and putting it down about 10% for the month, while the Dow Jones Industrial Average declined 1.1% to 24688. A close below 24145.55 would put the blue-chip index in correction territory.
Markets around the world have been caught up in a whirlwind week marked by intraday drops and sharp rebounds. Worries about corporate revenue slowing and whether a slowdown in China and Europe growth could spill over into the U.S. economy have sent U.S. stocks into a tailspin, putting major indexes on course for their worst month in several years.
The recent stampede by investors has erased about $5 trillion in value from global stock and bond markets in October alone. But that shouldn’t be severe enough to affect the economy, for now, according to economists at Deutsche Bank.
Still, unless the markets regain their footing soon, the pressure for the Federal Reserve to reassess their monetary policy will continue to mount, they said.
“Academic studies of the wealth effect find that households and companies don’t react to short-term fluctuations in their wealth but instead react to a moving average of where their wealth levels are,” said Torsten Slok, chief international economist at Deutsche Bank Securities, said in a note to clients.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2018-10-26/your-evening-briefingBloomberg:
https://www.bloomberg.com/news/articles/2018-10-25/asia-stocks-set-to-rally-on-u-s-gains-bonds-slip-markets-wrap?srnd=premiumWSJ:
https://www.wsj.com/articles/global-stocks-resume-declines-1540541081MarketWatch:
https://www.marketwatch.com/story/us-stock-futures-under-pressure-after-amazon-google-disappoint-2018-10-26/printIBD:
https://www.investors.com/market-trend/stock-market-today/stock-news-today-amazon-earnings-alphabet-earnings/Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-resumes-selloff-sp-flirts-with-correction-idUSKCN1N01JNCNBC:
https://www.cnbc.com/2018/10/26/stock-market-us-futures-show-drop-for-dow.htmlU.K.:
https://www.marketwatch.com/story/ftse-100-tumbles-to-near-2-year-low-as-global-stock-rout-resumes-2018-10-26/printEurope:
https://www.marketwatch.com/story/european-stock-markets-tumble-sharply-lower-to-end-an-ugly-week-2018-10-26/printAsia:
https://www.cnbc.com/2018/10/26/asia-markets-wall-street-ecb-currencies-in-focus.htmlBonds:
https://www.cnbc.com/2018/10/26/us-bonds-treasury-prices-higher-amid-market-volatility.htmlCurrencies:
https://www.cnbc.com/2018/10/26/forex-markets-dollar-yen-stock-markets-in-focus.htmlOil:
https://www.cnbc.com/2018/10/26/oil-markets-saudi-arabia-crude-supply-in-focus.htmlGold
https://www.cnbc.com/2018/10/26/gold-markets-stock-markets-ecb-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx
Comments
Wow! No, your multiple references demand a double Wow!!! I likely will not visit all of them, but I appreciate and applaud your effort.
No real surprise that an up day is followed by a down day. The long term data suggests that we enjoy about 53% up days and suffer about 47% down days. Note that I did check that the sum was 100%!
As investors we shouldn't fall into the Gambler's Fallacy trap. Given a return, we shouldn't assume that the next return will immediately move to restore the long haul average. The market isn't that simple. We should temper our quick response reactions. Those could do harm to our long term success. I'm sure readers on this site control those wealth destructive impulses so this caution is likely unneeded.
Best Wishes
Regards,
Ted