Stocks sank for the sixth consecutive day on Thursday, with the Dow Jones Industrial Average plunging more than 500 points. Even though the drop was not as dramatic as Wednesday's 800-point drop, Wall Street is more worried than ever.
The CBOE Volatility Index, sometimes referred to as the "market fear index," is at its highest point since February, CNBC reports. After a slight uptick, fears went skyrocketing on Thursday afternoon as sell-offs continued at frightening rates.
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The VIX indicates when investors are getting concerned that markets aren't experiencing a simple "correction," as Treasury Secretary Steven Mnuchin characterized it. The spike to 28.84 shows that the Dow's 1,400-point loss over two days, as well as inflation and continually rising trade tensions between the U.S. and China, could seriously disrupt the relatively steady gains in recent months.
The decline over the past week has rippled through Asian markets, with indexes in Tokyo, Hong Kong, Shanghai, and Taiwan falling between 3 and 6 percent on Thursday. President Trump has blamed the Federal Reserve's newly-raised rates for the tumble. Read more at CNBC. Summer Meza
Stock markets around the world plunged Thursday, following one of the worst point drops in the Dow Jones Industrial Average's history on Wednesday.
Bloomberg reports that the 832-point drop triggered a massive U.S. sell-off, which rippled through Asian markets. Indexes in Tokyo, Hong Kong, Shanghai, and Taiwan plummeted between 3 and 6 percent, and experts say the rout will continue.
President Trump blamed the Federal Reserve's newly-raised rates for the tumble, but Treasury Secretary Steven Mnuchin said the "correction" in the market was "not particularly surprising." Analysts say rising trade tensions between the U.S. and China could continue to cause strife; the CBOE Volatility Index, sometimes referred to as the "market fear index," is at its highest point in about four months. Read more at Bloomberg. Summer Meza
In the wake of major drops in the Dow Jones Industrial Average and S&P 500 on Wednesday, President Trump said the markets are "in a correction that we've been waiting for, for a long time."
Speaking to reporters in Erie, Pennsylvania, Trump said the Federal Reserve has "gone crazy" for continuing to raise interest rates. "I think the Fed is making a mistake," he said. "They are so tight." It's rare for a president to remark on the short-term rises or drops in the stock market, and almost unprecedented for a president to publicly chastise Fed decisions.
The Dow dropped on Wednesday by over 800 points, the S&P fell more than 3 percent, and Nasdaq plummeted over 4 percent. Analysts say investors are worried about rising interest rates and trade tensions between the United States and China. Catherine Garcia
Global stocks fell on Monday as North Korea's sixth and most powerful nuclear test sent investors searching for safer investments. The yen, gold, and sovereign bonds rose. South Korea's benchmark stock index fell by more than 1 percent, and Japan's Nikkei lost nearly 1 percent. Europe's major exchanges opened down by more than 0.5 percent but recovered some of those gains later. U.S. markets are closed Monday for Labor Day, but U.S. stock-index futures fell, with Dow Jones Industrial Average futures down by 0.2 percent, and S&P 500 and Nasdaq-100 futures down by 0.3 percent. Harold Maass
U.S. stock futures edged down ahead of the start of the week's trading on Monday, with technology shares losing the most as they appeared headed for a second straight day of declines after Friday's plunge. The tech-heavy Nasdaq-100 was down by 0.6 percent early Monday, while the S&P 500 lost 0.2 percent and the Dow Jones Industrial Average about 0.1 percent. "All eyes will be on the U.S. tech giants when the U.S. stock markets open," said Kathleen Brooks, research director at City Index, in a note. "A second session of hefty losses for the Nasdaq and U.S. tech sector could spook the markets this week, so if we don't get a recovery then we may see a broader decline in growth assets." Harold Maass
Global stock markets were mixed on Friday, the last trading day of the year, ahead of the opening bell in the U.S. European stocks edged down while some Asian markets made gains. U.S. stock futures edged higher with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite benchmark indexes all rising by about 0.2 percent, signaling a positive start to the day. The Dow is poised to wrap up its best year in three years. U.S. stocks edged lower on Thursday as investors traded cautiously to close out 2016. Harold Maass