A wild day on Wall Street ends with Dow down 173 (update)

[Omaha Steve]

Last edited Wed Oct 15, 2014, 05:15 PM - Edit history (1)

Source: AP-Excite

Stocks are ending a wild day mostly lower as indexes recover much of an early plunge.

Investors dumped risky assets Wednesday in heavy trading and parked their money in investments seen as relatively safe, such as U.S. government bonds.

The Dow Jones industrial average plummeted as much as 460 points in afternoon trading, then clawed back much of the ground it lost. It ended down 173 points, or 1.1 percent, at 16,141.

The Standard & Poor's 500 fell 15 points, or 0.8 percent, to 1,862. The Nasdaq fell 11 points, or 0.3 percent, to 4,215.

FULL story at link. Original story below solid line.



In this Oct. 8, 2014 photo, an American flag flies in front of the New York Stock Exchange in New York. U.S. stocks are plunging in early trading Wednesday, Oct. 15, 2014, as traders flee risky assets. (AP Photo/Mark Lennihan)


Read more: http://apnews.excite.com/article/20141015/financial_markets-us_close-abaa524e97.html

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Fear rises in stock market as Dow drops 400 points

http://apnews.excite.com/article/20141015/financial_markets-679e3353f9.html

[OKNancy]

1. ended up with "only" a drop of -173.45

Nasdaq ended at -11.85 (.28% loss)

[heaven05]

2. another crash

in the making...ala 2008ish?

[blkmusclmachine]

3. People are rightfully scared that the Republicans are going to take Senate control in the November

elections. That would be beyond very terrible if they do.

[elleng]

4. Was down 400+ this morning,

but recovered: MARKETS »

S.&P. 500
1,862.49
–15.21
–0.81%
Dow
16,141.74
–173.45
–1.06%
Nasdaq
4,215.32
–11.85
–0.28%

[Andy823]

5. It closed at -173

While it might have hit -400 sometime during the day it came back.

There will be a lot of up and downs till after the election, but it mostly about raking in their profits. One day they sell and the market drops, the next day they buy and it goes up. It's going to be a volatile market till after the elections, at least. Last week I read an article that said Wall street was "buying" the GOP brand, they were confident that republicans would win the senate so the market was supposed to be steady. They also said that if democrats won instead there would be a "correction" after the elections. Well looks to be like the "correction" hit early for some reason. Maybe they figured out they were wrong and are now cashing in on stocks they think might not do so good when democrats keep the senate.

[JoePhilly]

7. The DOW was supposed to drop to 3000 if Obama was elected in 2009.

Was supposed to drop again if he won in 2012.

I think you are right ... folks are grabbing some gains ... and will buy back in as soon as a bottom starts to appear.

[titaniumsalute]

6. More mumbo jumbo bullshit from Wall Street

The only people frightened are the ones in the market for huge % in short term deals. God damn the market has done wonders for my little portfolio in the last four years. There is NEVER a market that just keeps going up. It must correct occasionally. I think it could easily drop another few thousand points. I'd still be way up.

And on edit...

Historically October is a shitty month for stocks, plus the elections, plus ebola, etc. Lots going on to spook investors at the moment.

[mahina]

12. I agree

What does this mean for mortgage rates I wonder?

[yellowcanine]

8. Sounds as if the fear abated somewhat if it recovered more than 200 points.

October is notorious for stock market volatility. I suspect by the end of the year many of the October losses will have recovered. The market probably had moved up a little too quickly and was due for some correction. Anyway, think long term. Don't look at the portfolio every day and you will sleep a lot better.

[whatthehey]

9. strangely enough today is 6 years to the day

of the 733 pt 8% drop when they finally admitted the financial meltdown was unstoppable.

And here we are a fairly short time after up a good 60% from before that fall, even after this one.

This too shall pass. Likely faster than most think.

[demwing]

10. If Dems don't spin this as Markets in fear of a Republican Senate

then they're losing an opportunity. We all know that, historically, the market does better when Dems are in office, right?

[ffr]

11. History: NYSE typically volatile in October

Remembering back:

Black Monday refers to Monday, October 19, 1987, 508 points or 22.61%

I'm too lazy to go back and find all there other DJIA crashes that occurred in the month of October, but it's usually when the big brokerages profit take before year end. It may not be the only reason, but it's almost always a contributing part of the reason. You can set your watch by it.

For the market to fall as much as it did in 1987 (Reagan era), it would have to drop over 3,660 points. Put that into perspective.

[Maeve]

13. Key word--perspective

Don't look at the point drop (or rise) folks--look at the percentage. And the poster above is right--October, thy name is volatile!