General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsStocks fall sharply after a massive 3-day rally
Stocks fell sharply Friday, giving back some of the strong gains from the previous three days to cap another volatile week on Wall Street.
Sentiment took a hit as investors focused back on the coronavirus outbreak as the U.S. became the country with the most confirmed cases.
The Dow was down more than 800 points, or 3.7%, while the S&P 500 and Nasdaq dropped 3.2%.
Chevron, Boeing and American Express led the 30-stock Dow lower, sliding more than 5% each. Energy and industrial s were the worst-performing sectors in the S&P 500 as the dropped 5.8% and 4.3%, respectively.
The wild market swings come in a week when investors have been pulling money across the board and heading for the safety of cash.
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The Velveteen Ocelot
(115,576 posts)Wounded Bear
(58,584 posts)the stock market was a bubble looking for a pin to pop it. All the hype about "the economy is fundamentally sound" was mostly BS.
We're still seeking the bottom here.
customerserviceguy
(25,183 posts)You have sucker rallies that allow the sharpies to get out with minimal damage. I'm sure that some day trader types have been working them like a business.
getagrip_already
(14,606 posts)The market doesn't care if a company can keep its lights on another month. It cares how much revenue it's going to generate. Though recently it hasn't cared all that much since so many buybacks were occurring.
But when you look at a company, and see it's revenue stream may never recover, you aren't going to put your money into it. You are going to sell it off.
Entire swaths of the economy may never recover. People will simply change their spending patterns. It will take cars, appliances, and consumer goods years to recover. Companies may just realize that business travel isn't that important anymore.
There will almost certainly be a glut of used IT equipment that will depress new sales for years to come (this happened in 2000).
So what if a company won't have to declare bankruptcy this month. Many will never again be revenue engines.
ProfessorGAC
(64,827 posts)... everything is down more than 3%. Bargain hunters done for a while?