Why the stock market plunged Monday
The first thing to know about the stock market’s eye-watering slide Monday is that it wasn’t caused by anything fundamental.
There was no particular piece of news that drove the major averages to capsize, in a move that sent the Dow industrials off more than 1,500 points — a new intraday record — briefly in the final hour of trading.
Instead, the market took on a mind of its own, where sentiment and likely some computer-programmed trading sent Wall Street into a bizarre tizzy.
Fear brewed over a number of issues, with the biggest being trepidation about rising interest rates even though government bond yields actually were lower on the day.
Dow futures swing 1,100 points in battle to recover from historic stock selloff
U.S. stock futures swung wildly in extremely volatile trading on Tuesday, with those for the Dow Jones Industrial Average pointing to a more-than 100-point loss after trading in a 1,100-point range in the run-up to Wall Street’s open.
That’s as global equities picked up the selling baton from historic losses on Wall Street on Monday, with sharp losses across Asia and Europe.
In a brutal session Monday, the Dow DJIA, -4.60% plunged more than 1,500 at the low point, as investors appeared to panic out of stocks. The index finished down 1,175.21 points, or 4.6%, to 24,345.75, marking its biggest one-day point drop ever.
XIV, SVXY Halted, News Pending
With every trader suddenly focused on the vol-ETF complex after last night’s collapse in the NAV of the most popular inverse VIX ETF – the Credit Suisse-created VelocityShares XIV…
…which plunged over 80% effectively triggering a “termination event”, this morning it appears that the worst is indeed coming, with both the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) and the ProShares Short VIX Short-Term Futures ETF (SVXY) suspended by the Nasdaq and NYSE Arca, respectively, on pending news.
Bitcoin breaches $6,000 as cryptocurrency exodus accelerates
Bitcoin dipped below its 200-day moving average for the first time in more than two years on Tuesday.
Cryptocurrencies continued their 2018 swoon as worries over escalating government scrutiny combined with a broader flight from riskier assets to send Bitcoin to its lowest level since November.
The biggest virtual currency sank as much as 16 per cent to $5,992 on Tuesday and was trading at $6,103.93 as of 2:51 p.m. in Hong Kong. Alternative coins Ripple, Ether and Litecoin all tumbled at least 14 per cent.
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Stock Market Sector Performance
Stocks to Trade | Tuesday Edition 2-6-18
Bearish Momentum: ostk, hes, amgn, kmx, xom, fl, mmm, hd, utx, xlnx, dfs, vmw, unh, cvx, lrcx, axp, de, jpm, fb, pm, cof, aal, wdc, swks, cost, gs, hon, hal, cvs, ibm, cat, unp, len, car, dis, vlo, pep, ual, dltr, mcd, slb, avgo, all, ups
Bullish Order Flow: NFLX, AMZN, EA, HCA, ABBV, NKTR, STX, AMZN, KSS, ABBV, MA, PNC
Bearish Order Flow: scg, eqt, avgo, lite, celg, lb, aapl, ual
Double Normal Volume: AAPL, MSFT, XOM, JPM, NVDA, JNJ, V, CVX, AMZN, HD, BA, HES, UPS, MCD, MA, VLO, AMGN, MMM, GS, KMX, ALK, PNC, ALL
Inside Days: fcau, xl, wpm, deck
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