US stocks are lower Thursday morning as losses from the previous day continue. The NASDAQ Composite index is nearing a correction - a 10 percent drop, falling 9.8 percent from its January 26 high. The Standard & Poor's 500 index, the benchmark for many index funds, took only nine days to fall 10 percent from its all-time high on January 26.
For a while Friday, it was anybody's guess whether the weeklong sell-off would ease or worsen.
USA stocks opened higher on Friday but the main indexes were still on track for hefty weekly losses.
The Dow Jones briefly sank 500 points after surging more than 349 points earlier in the day and then swung to a 330-point gain in the final hour of trading.
The Dow Jones Industrial Average had endured its, with the decline of 1,032 points only surpassed by the. Germany's DAX declined 2.6 percent. Sure, we've had some market declines, but nothing that gave us any pause for concern. The S&P 500 also dropped 100 points, or 3.75 percent.
For the second time this week, the Dow plunged more than 1,000 points. The Nasdaq rose 97 points, or 1.4 percent, to 6,874.
For the week, the Dow is down by about 5.2 percent.
For years, many investors have stayed on the sidelines hoping they'd get an opportunity to buy the stocks on their wish list at discount prices. When bond prices go lower, their yield increases.
Also contributing to the big swings this week was the blow-up of exchange-traded products that were built to profit if markets remained calm. He thinks the market highs are in place for at least the next several months and possibly for the rest of the year.
Corrections are seen as entirely normal occurrences, and the market, now in its second-longest bull run of all time, has not seen one in two years, an unusually long time.
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However, while there are reasons not to get too anxious, there's still no way of knowing whether the current correction could become a "bear market" or a crash. It just seems like a major contraction because for the past couple years, the market has essentially gone straight up.
Analysts warned that stocks had become too expensive.
The S&P 500, meanwhile, broke below its 200-day moving average, a key technical level according to traders. The stock dropped $28.24 to $59.80. And it takes an average of just over another two years for the market to recover its lost ground.
But economic growth has been picking up, wages have started rising more rapidly and the Republican tax cuts promise to provide more stimulus this year. The yield on the 10-year note was as low as 2.04 percent as recently as September. The housing industry is solid.
Oil sank as record-high USA crude output added to concerns about a sharp rise in global supplies. This week, the Dow has travelled about 20,000 points this week as it gyrated wildly between positive and negative territory. On the Nasdaq, 1,579 issues fell and 1,259 advanced. Heating oil shed 7 cents to $1.86 a gallon.
The price of gold rose $4.40, or 0.3 percent, to $1,319 an ounce.
The 3 percent pullback Thursday across US indexes is something that did not happen in all of 2017.
Figures across the board look fairly bleak compared to what they were at the closing bell February 2-the kickstart of recent downturn. The April gold contract was down US$3.30 to US$1,315.70 an ounce and the March copper contract was down five cents to US$3.03 a pound.
The dollar fell to 108.84 yen from 109.42 yen. The euro dipped to $1.2224 from $1.2263.
Even so, the rough stretch for USA stocks is far from the 22-percent plunge that set off the 1987 stock market crash.
Share prices tumbled in Europe on Friday, falling about 1.4 percent in Paris, around 1.2 percent in Frankfurt and about 1.1 percent in London.
Cyclical downturns are more likely to lead to bear markets because credit conditions also begin to tighten, he said, pointing to the example of the bursting of the dot-com bubble of early internet investment in 2000. A 3 percent yield is looked upon by investors as a motive for people to flee the risk of stocks for the relative safety of bonds.