Stocks Resume Sell-off

On Monday, US stocks continue to trade much lower as all investors added to the losses that occurred on Friday among the situation where there were a lot of concerns regarding the increasing rates of interests. A drop of 228 points was seen by the Dow Jones Industrial Average and at the time of opening the 30-stock index fell down by about more than 300 points. The financial sector was the worst performing one which was proven from the fact that the 0.8 percent drop by the S & P 500. On the other hand, the NASDAQ composite fell down by 0.6 percent as a result of which Amazon, Facebook, Netflix and Alphabet all began their trading with a low point. The mobile manufacturing giant Apple even started off with low trading before finally rising by 1.1 percent.

Quincy Krosby who is the chief market strategist at Prudential Financial stated that they are not at all used to getting drastic fall like this anymore. He said trading with low points has set them back since they are actually not mentally prepared to take this. Krosby said that this sell off which is in the bigger scheme of things is actually not that big as it seems but it is extremely important in psychological terms. Dow futures came down by about more than 300 points while futures of the S & P 500 and NASDAQ 100 also came down drastically before trading was finally closed. On Monday, the same was the fate of the European stocks that also fell. The French CAC 40 and the FTSE 100 came down about more than one percent. On the other hand, the German Dax began trading 0.8 percent lower.

On Friday, the Dow fell by 665.75 points which is the same as 2.5 percent and this was actually the biggest sell off since the month of June, 2016. Whereas the S & P 500 recorded its worst performance since September 2016 and very similarly the NASDAQ showed its worst performance since August 2017. Stocks have to face a lot of pressure due to the fact of the rapid increase in rates of interests in the previous week. The benchmark yield of 10 year increased to its highest point in the past four years of time. But overnight the stock rose to about 2.88 percent before trading at around 2.83 percent.

April 23, 2018 - 15:14
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