18.02.05 Retry Wall Street Record

February 5, 2018
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Historic Stock Market Drop

Dow Down
1,175 pts or 4.6%
Mon Feb 5, 2018

Biggest point drop ever…but not biggest percentage drop in history.

Percentage Points Matter.

Flip For Why

A 10% drop in stocks may signal a correction in a hot market. It also may signal something else. Check sources for more.

  1. Corrections are generally temporary price declines interrupting anA uptrendA in the market or an asset. A correction has a shorter duration than aA bear marketA or aA recession, but it can be a precursor to either. https://www.investopedia.com/terms/c/correction.asp#ixzz56INQF1hw
  2. Stocks simply had too many buyers at the start of the year. In fact, more than $100 billion flowed into stocks globally at the beginning of 2018, according to Bank of America Merrill Lynch data.A The Dow’s massive dropA was the market’s way of “unwinding” the excess price gains that had built up, says Tom Essaye, editor and founder of a financial newsletterA The Sevens Report. The selloff has been sparked by inflation fears and worries that interest rates could rise faster than expected. Those fears stemA fromA a strong employment report released FridayA that showedA wage growth for hourly workers over the past year had risen nearly 3%, its quickest pace since 2009.

by Jenna Lee,