STOCK MARKET WATCH -- Wednesday, 26 August 2015

[Demeter]

5. Dow, S&P Close Lower In Biggest Reversal Since Oct. 08 REPOST FROM LBN BY brooklynite

Source: CNBC

U.S. stocks closed lower, after a failed attempt to rally from the Dow's worst 3-day point decline in history, as investor confidence waned amid continued concerns about China and global growth.

The Dow Jones industrial average and the S&P 500 closed about 1.3 percent lower after rallying nearly 3 percent earlier, their biggest reversal to the downside since Oct. 29, 2008. The S&P 500 remained in correction territory after falling there on Monday. The index also posted its first six-day losing streak since July 2012.

"That crash (Monday) was so big and so long since we had one (investors) don't want a repeat of 2008 so they bail out," said Lance Roberts, general partner at STA Wealth Management.

The Dow fell 205 points and S&P 500 closed below 1,900 after falling into negative territory in the last half hour of trade. The Nasdaq Composite failed to hold slight gains and closed 0.44 percent lower.


Read more: http://www.cnbc.com/2015/08/25/us-markets-attempt-recovery.html

COMMENTS FROM POST: Wellstone ruled

Some of those high fliers got their wings clipped.

Watch for the Fed to intervene by Friday. This prearranged market sell off is going to wreck our economy and the Fed is prepared to pump trillions into equities to quell the pending uprising coming from 401 k and IRA holders. Still appears this was prearranged to cover the Chinese Economic collapse.


progree (2,132 posts)

S&P 500: all time high: 2131 on May 21. Now 1868, down 12.3% from the all time high

A market correction is a drop of between 10 and 20%

A bear market is a drop of 20% or more.

Just a little scorecard on where we're at, so far


Turbineguy (20,420 posts)

And the 3 PM announcement from Citibank about interest rate hike had absolutely, positively, no doubt what so ever, nothing to do with that reversal.

$arca$m


One of their big guns said

that the Fed would hike interest rates anyway in September. I saw it on Bloomberg. I think it spooked the (easily spooked) market since one of the Fed governors said earlier that there would probably be a delay.


Star Member herding cats (3,017 posts)

Here you go

Citi: The Fed Will Still Hike in September, But There's One Big Wild Card Ahead

Citi is sticking with its call that the Federal Reserve will hike its policy rate next month.

The bank's economists, led by William Lee, interpreted the Federal Reserve's July minutes differently from other institutions, claiming that monetary policymakers' increased concerns about financial stability cemented the case for a hike in September.

Others institutions have recently pushed back their estimated dates for liftoff in light of international developments and volatility in financial markets emanating from China's decision to devalue the yuan.

Federal funds futures rates imply that the probability of a rate hike has slipped below 30 percent, down substantially from roughly 50 percent last week.