Wall Street Roller Coaster: Dow Jumps Higher After Plunging At Open

Ivan Schwartz
February 10, 2018

The Dow Jones industrials were up 50 points just shortly after falling by 500. And on several days during the financial crisis in 2008, the Dow dropped 6% or 7%.

Gains in industrial and consumer discretionary stocks led advances on the S&P as well as the Dow. It was up as much as 349 in early trading.

The increase came on a day when stocks moved by more than 1,100 points.

During Friday's session alone, the S&P 500 swung from as high as up 1.5 percent to as low as down 1.9 percent, echoing the big swings of the past week. Switch was down 14 cents, or 0.90 percent to $14.83.

Wall Street tumbled back into sell-off mode, with the Dow plunging more than 1,000 points as worries over interest rate hikes continued to drag the market down.

The last time the market had a correction was two years ago, which is seen as an uncommonly long time. It's 10.2% drop since its January 26 record high is its biggest since a 14.2% decline ending in February 2016.

Two of the US stock market's three major indexes are in correction territory now.

While Monday's 1,175 point for the Dow was drastic, the fall had little to do with the economic fundamentals underlying the market's historic run.

Arsenal can still win English Premier League title, says Mohamed Elneny
Last year's champions Chelsea are wobbling badly under Antonio Conte this season and haven't mounted a title challenge. Liverpool FC will return to Premier League action next weekend when they take on Southampton at St Mary's.

Police officer dead and 2 deputies injured in Henry County shooting
The GBI said it has identified the suspect, but is withholding his name pending notification of his family. As a precaution, Locust Grove Elementary School has been placed on lockdown. "It's tranquil.

Rubio Leaps To Top Democrat's Defense Over Texts To Russian Oligarch's Lobbyist
Warner disclosed the texts "four months ago", that would have been several months after Warner exchanged the texts. Warner, Virginia Democrat, was in contact with lobbyist Adam Waldman, who had ties to Russian billionaire Oleg V.

The other major indexes also started out trading up before taking a dive.

On Monday, the Dow finished down 4.6 percent while the S&P 500 sank 4.1 percent, to 2,648.94. The Nasdaq composite is close, but not all the way there, down 9.7 percent from its record.

Equities for years have looked relatively attractive compared to the low yields offered by bonds, but the rise in Treasury yields has diminished the allure of stocks, especially with stock valuations at historically expensive levels. Treasury yields swung before nudging higher.

While Wall Street has been calling for a correction for some time, given the market's euphoric rise, the fall has been more violent and quicker than anticipated.

USA stocks overturned early losses to trade higher on Wednesday as some buyers returned to a market still shaking from a record fall for the Dow Jones Industrial Average earlier this week. Germany's DAX lost 2.6 percent while France's CAC 40 ended down 2 percent. The VIX closed up about 24 percent.

"Although there are a couple of things in the way of ideal scenarios, that being interest rates and bond yields and what not, people are still looking at equities as a good investment and they still believe that there is going to be continued upside", said Peter Costa, president of trading firm Empire Executions in NY. The Pan-European STOXX 600 was off.70 percent and Britain's FTSE was down 34 points, or.49 percent.

Friday's U.S.jobs report showed wages grew at a faster pace in January, and investors anxious that that means inflation is speeding up, and that the Federal Reserve will have to raise interest rates faster than previously expected in order to keep that inflation in check.

Other reports by GizPress

Discuss This Article