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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Dow just lost 12% in one week. Here's why and what likely happens next
PUBLISHED FRI, FEB 28 20206:28 PM EST UPDATED 2 HOURS AGO
Fred Imbert
@FOIMBERT
The Dow and S&P 500 each dropped 12% and 11% for the week, respectively, marking their worst weekly performance since the financial crisis.
Wall Streets historic shake-up came as worries grew over the coronavirus impact on the global economy and corporate profits.
The U.S. stock market suffered a historic pullback this week as the coronavirus spread outside of China, spooking investors and traders out of equities.
The Dow Jones Industrial Average and S&P 500 each dropped 12% and 11% for the week, respectively, marking their worst weekly performance since the financial crisis. The 30-stock Dow posted its biggest one-day points loss ever on Thursday. It also tumbled deep into correction territory, down more than 10% from a record high, along with the S&P 500 and Nasdaq Composite.
Wall Streets historic shake-up came as worries grew over the coronavirus impact on the global economy and corporate profits. The number of new cases in China kept rising this week, while the number of people contracting the virus spiked in South Korea and Italy. This led a slew of companies to issue warnings about their earnings. It also dampened the market outlook for investors worried it could become widespread in the U.S. soon.
When people dont know how to quantify things, which is really where were at right now, the first reaction in the market is to sell first and figure things out a bit later, said JJ Kinahan, chief market strategist at TD Ameritrade.
https://www.cnbc.com/2020/02/28/the-dow-just-lost-12percent-in-one-week-heres-why-and-what-likely-happens-next.html
But there is a team in the white house............................that are idiots.....................
Fiendish Thingy
(15,369 posts)Trumps impeachment/resignation?
Theres got to be a line, once crossed, where action will be taken against the most corrupt, incompetent administration ever.
ProudMNDemocrat
(16,485 posts)While the rest of us struggle to pay for them all.Those poor rich folks.
BigmanPigman
(51,432 posts)I figure he is trying to buy votes after that disastrous press briefing this week.
Edit: I just saw it posted on DU too.
https://www.democraticunderground.com/10142439236
Turbineguy
(37,212 posts)But that uncertainty is giving way to the realization that idiots are in charge of the Corona Virus Crisis.
lunasun
(21,646 posts)The point made in the article is why I do not see why some are saying yay I hope it tanks it will blow back on trump or something because it can mean job loss eventually as it filters out to real world economy imo
Lets hope not
The longer this [coronavirus] stays in the minds of market participants, the greater the impacts going to be not only on the markets, but the economy, said Dan Deming, managing director at KKM Financial. Thats why we see these gyrations.
cbdo2007
(9,213 posts)Once schools, offices, theme parks, malls, etc start closing down for months at a time like they are in Asia, shits going to get pretty real around here.
Trump and his people think this is just going to disappear on its own over the summer and things will be fine.
Wounded Bear
(58,440 posts)I'm no expert, but this is not just a panic sellout. This is a bit more than a cashout selloff.
It's been bubbling for a while, COVID is the pinprick that popped the bubble.
ooky
(8,886 posts)market needed to hear to start this kind of selloff. I think you are correct not to expect a quick turnaround due to the circumstances of this selloff and the uncertainty about how severe the impact on businesses will be.
Wounded Bear
(58,440 posts)customerserviceguy
(25,183 posts)to a dictatorial state like China, and see what happens when the shit hits the fan over there.
Maybe the "captains of industry" (as they were called in my freshman accounting classes in 1975) will learn a lesson from this, but probably not.