Dow, Nasdaq Plunge 3% into CorrectionPosted: August 21, 2015
The Dow Jones industrial average closed at session lows, off nearly 531 points and in correction territory for the first time since 2011 as all blue chips declined. The last time the index closed more than 500 points lower was on Aug. 10, 2011. In the last five years, the index has only had four instances with closing losses of more than 400 points.
“For investors the momentum and the drive of the market is now lower (than) it used to be because there’s no place to hide,” said Lance Roberts, general partner at STA Wealth Management. “Every time we hit the major technical points we kept selling.”
A trader noted that investors stopped looking at technicals and were plowing through them.
“It’s an expiration day and it looks like they’re to have for sale on the close maybe as much as a billion dollars,” said Art Cashin, director of floor trading for UBS.
The Nasdaq Composite lost 3.5 percent, also closing in correction territory and joining the other major averages in negative territory for the year.
“Right now there is a feeling of fear in the marketplace and all news is interpreted negatively and it’s interpreted indiscriminately,” said Tom Digenan, head of U.S. equities as UBS Global Asset Management…(read more)
- Due to China’s Activity and Market Nervousness, Dow Suffers Worst Drop Since 2011 – Almost 500 Points – Putting Market in Correction Territory; Nasdaq in the Red for 2015 (blackchristiannews.com)
- Wall Street down 1 percent, Dow and S&P slip into red for the year (channelnewsasia.com)
- US STOCKS-Wall St down 1 pct, Dow and S&P slip into red for the year (dailymail.co.uk)
- Stocks Plunge Second Day in a Row Amid China Fears (nbcmiami.com)
- U.S. Stocks Fall as Biotech Drags (wsj.com)
- S&P Below 2K, Dow Falls 300 Points as Growth Concerns Weigh (teaparty.org)