The Great Smoky Mountain Journal
Source: Fox News
Posted: Tuesday, January 01, 2019 02:31 PM
All Eyes On Wall Street Tuesday As Stock Market Prepares To Follow Up On Biggest Plunge In History
The Dow dropped a stunning 1,175 points on Monday, building on losses from a week ago as investors and Main Street received mixed signals about the economy. The market had made huge gains in the first year of the Trump administration and was up more than 40 percent at one point. But the sea of red washed away all of 2018's gains.
"This is a reality check that the market was priced to a perfection that didn't exist," Diane Swonk, chief economist at Grant Thornton, told the Chicago Tribune.
“Playtime is officially over, kids."
- analysts at Rabobank
Overnight, foreign markets continued to plummet and U.S. futures whipsawed between major losses and modest gains. Regardless of how things shake out Tuesday, the volatility reminded investors stocks can't remain on an upward trajectory forever, analysts noted.
WSJ Markets
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Stocks plunge causes panic on trading floors from Wall Street to Hong Kong
‘Did someone fat finger this?’
w/ @srussolillo @SuryatapaB @ georgikantchev https://www.wsj.com/articles/stocks-plunge-and-traders-panic-we-dont-see-anywhere-to-hide-1517894172 … …
The market carnage that started in the U.S. rippled across Asia on Tuesday, leaving traders, investors and strategists befuddled as to how to cope with the sharp and sudden declines, particularly...
wsj.com
“Playtime is officially over, kids,” analysts at Rabobank said. “Rising volatility painfully reminds some investors that one-way bets don’t exist.”
Economists put a positive spin on Friday's nosedive of nearly 5 percent, noting it may actually be evidence of the strengthening economy. Rising wages and the prospect of the Federal Reserve raising interest rates are all signs of a healthy economy -- but also tend to hurt stock process.
On Monday, when the market closed down 1,175.21 points, to 24,345.75 – the largest one-day percentage drop since 2011 – traders were growing increasingly worried as the day plowed on, the Wall Street Journal reported.
“First thing I asked myself was: ‘Is this a flash crash, did someone fat finger this?’” Eoin Murray, head of investment at Hermes Investment Management, told the paper.
