US indices ended lower in choppy trade

US indices ended lower in choppy trade

On Monday, the Dow took its biggest single-day point plunge in history. But US stock markets had a phenomenal year in 2017.

In other words, the 2018 stock sell-off was mainly driven by catalysts that have little to do with the strong economic health driving the bull market's run.

After rising sharply last week, U.S. Treasury yields fell from four-year highs on Monday as the selloff in equity markets sparked demand for low risk debt.

Major indexes in Asia and Europe took steep losses and USA markets started sharply lower, only to repeatedly change direction.

Indexes enter a bear market-a more serious occurrence-when they drop 20% or more, as happened in the months following the financial crisis in 2008 and 2009, when equities lost approximately half their value. "Is there more inflation down the road than we're expecting?" "It will likely be necessary to raise interest rates somewhat earlier and to a somewhat great extent than we had thought", Gov. Mark Carney said during a news conference.

Global markets also fell.

Central banks, led by the United States Federal Reserve, have started to remove some of the supports that helped supercharge stock prices over the last decade.

Japan's benchmark Nikkei 225 index surged as soon as trading began, but gave up its initial gains as the yen strengthened against the dollar. The Cboe Volatility Index, a measure of market anxiety, dropped 27 percent. It's 10.2% drop since its January 26 record high is its biggest since a 14.2% decline ending in February 2016. Many factors were behind the rapid rise: The ever-improving economy and job market, business optimism, record corporate profits, and the big business tax cut, which Republicans made law.

European markets are rebounding this after two days of wild swings, but investors are still nervous. Eastern Time. The DAX index in Germany fell 294 points, while the FTSE 100 in England plummeted 193 points.

The Dow was down 501 points, or 2 percent, to 24,397. Brent crude, used to price worldwide oils, slid 94 cents, or 1.5 percent, to $63.87 in London.


The Dow's plunge on Monday set off global shock waves. It's down 83.48 points, or 5.4 per cent, for the week.

I keep hearing the term "circuit breaker". "Today, when good news is reported, the Stock Market goes down". Think of it as an emergency brake.

If the S&P 500 declines 7% in any trading day, all trading on the New York Stock Exchange is halted for 15 minutes. That was more than twice as much as Monday's fall.

The volatile trading session on Tuesday followed a two-day rout that wiped out the year's gains. What does that mean for you?

Asian indexes, particularly the Nikkei 225, often follow trends of USA markets.

The market's turmoil began last Friday and has continued this week as investors anxious about early signs of inflation.

Unemployment is at a 17-year low.

After a muted open, major indices were in the red most of the day, suffering a major bout of weakness in late morning and another round of selling late in the afternoon. Consumer and business confidence are near record levels.

Even the most bullish of market strategists will say a correction is ultimately healthy for a market because it removes some of the froth and speculation.

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