Market Overview

Dow Falls 1,300 Points In 48 Hours As Market Rout Continues

Share:
Dow Falls 1,300 Points In 48 Hours As Market Rout Continues
Related DIA
How Much Damage Is Debt Doing To America's Value?
A Peek Into The Markets: US Stock Futures Tumble Ahead Of Economic Reports
What's Going On With The Yield Curve? (Seeking Alpha)
Related QQQ
Markets Sell Off Amid Rising Recession, Yield Curve Concerns; Bank Stocks Hit Hard
Former US President George HW Bush Dies At 94
Markets Lose Steam Amid Growth Jitters (Wall Street Breakfast Podcast) (Seeking Alpha)

U.S. stocks experienced their worst two-day stretch in years this week, with the Dow dropping 1,200 points on Wednesday and Thursday.

Fears over the international trade war, rising rate hikes, the impact of Hurricane Michael, the upcoming U.S. midterm elections and a potentially disappointing Q3 earnings season likely all played a role in the weak market. Barclays is particularly concerned about a choppy earnings season for tech companies.

The Dow closed Thursday's session down 2.1 percent at 25,052.83, after dropping 3.1 percent on Wednesday. The S&P 500 closed at 2,728.38, down 2 percent.

Stocks Hit Hard

Amazon.com, Inc. (NASDAQ: AMZN) and Netflix, Inc. (NASDAQ: NFLX) were among the hardest hit stocks of the past 48 hours, tumbling 7.5 percent and 9 percent, respectively. The Dow’s biggest losers included Nike, Inc. (NYSE: NKE) and Boeing Co (NYSE: BA), which declined 7 percent and 6.9 percent, respectively.

The two-day 4.7-percent drop in the SPDR S&P 500 ETF (NYSE: SPY) comes after the S&P 500 gained 22.2 percent in the previous 18 months.

What Now?

"It's a momentum correction, not a portfolio correction," Joe Terranova, chief market strategist at Virtus Investment Partners, told CNBC. "While we have a bias to believe 2008 could happen again, I don't think this is the case."

Bankrate Chief Financial Analyst, Greg McBride said Hurricane Michael is no reason for investors to panic.

“Despite the regional economic impact of such a powerful, destructive storm, this will not have a lasting effect on the pace of national economic growth,” McBride said. “Even the economic impact felt locally will give way to faster economic growth in future months as insurance proceeds arrive and clean-up and rebuilding activity gets underway.”

Related Links:

The VIX Is Up 60% In A Week, Highest Level Since June

How The Stock Market Typically Reacts To Major Hurricanes

Posted-In: China Greg McBrideAnalyst Color News Futures Top Stories After-Hours Center Markets Best of Benzinga

 

Related Articles (AMZN + BA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DLTRBernsteinUpgrades0.0
CNPUBSUpgrades34.0
UGIUBSDowngrades63.0
ATOUBSDowngrades106.0
CSCONomuraDowngrades50.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Adidas CEO Talks Tariffs, Yeezy Release And The Rise Of 3D-Printed Shoes

Marlboro Maker Altria May Be In Talks With Cannabis Producer Aphria About A Minority Stake