Dow falls more than 1000 points as markets remain volatile

Traders on the floor of the New York Stock Exchange yesterday as the Dow closed down by 4.6 per cent

Traders on the floor of the New York Stock Exchange yesterday as the Dow closed down by 4.6 per centREUTERS

But it also means that just because the stock market has large losses today does not means these large losses won't be quickly reversed in the future.

Japan's Nikkei 225 index based in Tokyo was down 4.7% when it closed Tuesday after a rollercoaster day.

Oil majors BP and Royal Dutch Shell also took a sizeable chunk out of the blue-chip index as the rout in equities sent crude prices tumbling.

Stocks were coming off a big gain on Tuesday.

"It was volatile all day, crossing the line between gains and losses more than 20 times", NPR's John Ydstie reported.

At 10:09 a.m. ET, the Dow Jones Industrial Average was up 228.25 points, or 0.92 percent, at 25,141.02.

US stocks entered a formal correction Thursday, as two weeks of steep losses have cost two major index at least 10 percent of their value.

According to James G. Devine, a professor of economics, it is likely that stock prices were too high before the crash and this is only an adjustment, or "correction", toward what they should have been.

Shares were lower in all Asian markets after Wall Street officially began its first correction in two years, though losses were moderate with no sign of panic selling. It spiked above 50 early on Tuesday.

"If this is just the implosion of shorting volatility, it's not the end of the bull market", said Michael Antonelli, managing director of institutional sales trading at Robert W. Baird in Milwaukee.

"I thought it was nearly alarming that markets weren't considering that, for example, we have a different (Federal Reserve) in 2018 that could be more hawkish". The statement cited strengthening economic growth, low unemployment and increasing wages for workers.

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The market performance also reflects the strong US and global economies, which have boosted corporate profits. "They love it, but they're also respectful and terrified".

London's blue-chip stocks were spared the worst of Monday's price falls, with the index only losing 1.46 per cent, compared to the big four per cent fall seen on Wall Street's S&P 500 index.

Chipotle Mexican Grill fell 7.7 percent after the burrito chain said the number of visitors to its restaurants fell in the fourth quarter and would continue to decline through the middle of the year.

The Nasdaq Composite too added 148.36 points, closing at 7,115.88.

USA stocks were on the front foot on Wednesday, as London also closed higher. That is big, but it is dwarfed by the lurching moves the market made the last few days. "Net of tax, it's not an attractive alternative for investors".

Keith points out that much of Monday's drop was the result of automated trading systems.

Chinese markets fell despite unexpected strongly trade data Thursday.

The CAC 40 in France picked up 1.8%. South Korea's Kospi had declined 1.5 percent.

China's indexes followed suit with Shanghai Compsite Index losing 3.35 per cent to 3,370.65 while the blue-chip CSI300 fell 2.93 per cent to 4,418.89. Microsoft and JPMorgan Chase each lost 1.7 percent.

Wynn Resorts jumped 14.10 dollars, or 8.6%, to 177.32 dollars after Steve Wynn resigned as chairman and chief executive.

President Trump continuously speaks on the gains Wall Street has recorded during his first year in office. Wynn stock has fallen 11.6% since the Journal's report.

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