by Ian Harvey
October 12, 2018
Another roller-coaster session yesterday, with the Dow tumbling 546 points, or 2.1%. The S&P 500 closed down 2.1%, notching its sixth-straight losing session. And the Nasdaq briefly tumbled into a correction, signaling a 10% decline from previous highs.
It was not all bearish with the U.S. stocks swinging between minor gains and massive losses in a volatile session.
President Donald Trump continued to criticize the Fed's policy-tightening path as "ridiculous" and "a little too cute," stoking fears about the impact of recent interest rate rises. As a result, it was a back-and-forth between the bulls and bears.
One positive insight is that the market did not close on the lows of the day.
Stocks had a late-session rebound on reports that President Donald Trump and Chinese leader Xi Jinping have agreed to meet next month at the G-20 summit. Such a meeting could ease fears that the US-China trade war will hurt corporate profits and slow the US economy.
The declines this week follow months of better-than-expected performance in US markets, which bounced back after turmoil earlier in the year to set new records over the summer.
The concerns about higher rates have been compounded by a trade war between China and the US - which the IMF has warned could harm growth.
So, summarizing the reasons for a sell-off……
There is still plenty of bullish optimism for the future, particularly centered on earnings.
Expect The Market To Recover!
New Highs Expected Going Into The New Year!
A POSITIVE DAY AHEAD????
THE BULL MARKET CONTINUES!
Take advantage of what the market has to offer today.
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