Just A Coincidence: NYPOST - Dow plunges 666 points in biggest drop since Great Recession

Dow plunges 666 points in biggest drop since Great Recession

February 2, 2018 | 2:53pm
https://nypost.com/2018/02/02/dow-plunges-550-points-in-biggest-one...


In the worst sell-off since President Trump was elected, US stocks tumbled on Friday on fears a still expanding economy was finally pushing interest rates into the red zone.

As investors fled equities, the Dow Jones industrial average tumbled 666 points — the largest point decline for the index since the Great Recession.

One hour after the Labor Dept. on Friday morning reported a better-than-expected 200,000 jobs were created in January — all but ensuring a robust Federal Reserve attack on interest rates — investors opened the Dow down 125 points, and it went south from there.

“We all know that many bull markets have ended by the Federal Reserve as they raise the rates to the point of slowing the economy down perhaps too much,” Quincy Krosby, chief market strategist at Prudential Financial, told The Post.

“It’s come on quickly and it caught the market off guard,” Krosby said.

The Dow sell-off brought it below the 26,000 plateau — to 25,520.96 — the biggest points drop since Dec. 1, 2008.

The 2.5 percent drop, on a percentage basis, was the biggest since the day after the UK voted to exit the European Union — an event that sent markets into a free-fall the world over.

The Friday sell-off put the Dow on pace for its worst week in more than two years.

Even amid the fire and brimstone, some Wall Street stalwarts shrugged off the decline as no big deal.

“Stay the course,” said Greg McBride, chief financial analyst at Bankrate.com. “Markets go up and down, not just up. But they go up a lot more than they go down, so hang in there and consider buying more.”

The Dow had increased more than 7 percent so far this year, to a peak of 26,616 last week — one of the best starts even to a year.

The pullback only brings the index back to the level of Jan. 10, Bankrate.com spokesman Ted Rossman noted.

“That’s right, all we’ve done is unwind three weeks’ worth of gains,” he added.

The strong January jobs report — which included news that wages have grown by 2.9 percent over the past year, the biggest rise in four years — sparked a cascade of panic-selling.

Bond investors sold off government debt, on fears that the Fed may have to raise rates four times this year — one more time than the central bank has forecast, Krosby said.

Earlier this week, the Fed had hinted that it would likely raise rates for the first time this year in March. The central bank tends to shy away from specific guidance to the markets.

The yield on the 10-year bond, which moves in the opposite direction of price, rose as high as 2.85 — which it hadn’t seen since 2014, an ominous sign that investors expect the US economy to inflate.

Practically, that means that it’s going to get more expensive to borrow money for both businesses and individuals who want to buy a house, car, or put a vacation on a credit card.

“Mortgage rates have already moved higher,” Krosby said. “The cost of money in essence goes up.”

The S&P 500, a broader index of stocks, fell 2.12 percent, to 2,762.13. The Nasdaq composite dropped 1.96 percent, to 7,240.95.

Views: 115

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Comment by Chris of the family Masters on February 4, 2018 at 7:01pm

We are very close to see this "currency" charade ending in an almighty crash. It's been designed for this purpose.

Comment by DTOM on February 4, 2018 at 5:48pm

Just one of THEIR little messages to all - hidden in open sight, as per the rules of the game.

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted blog posts
3 hours ago
Burbia commented on Burbia's video
17 hours ago
Burbia posted a video

SUPEROLA & THE LOST BURGERS

This Game is RUBBISH !
17 hours ago
Doc Vega posted a blog post
Saturday
pohonemas33 team commented on tjdavis's photo
Thumbnail

DejaVu

"nice very goodjob, i wish you can visit official situs pohonemas33"
Saturday
Sandy posted a photo
Saturday
Doc Vega posted a blog post
Friday
Saint Quinn favorited Burbia's video
Friday
Doc Vega posted blog posts
Thursday
Burbia commented on tjdavis's blog post The Jewish Couple That Taught Bob Dylan Hebrew and Introduced Him to Zionism
"Haaretz put this story behind a pay wall. Sali Ariel and Terry Noble were the names of the couple…"
Jul 23
William Heckman is now a member of 12160 Social Network
Jul 23
cheeki kea commented on tjdavis's photo
Jul 23
cheeki kea commented on cheeki kea's video
Thumbnail

This Woman DESTROYED Harley-Davidson's Future Forever

"It's a sad day on the highway. But I guess the show must go on. Watch out for the ruination of…"
Jul 23
cheeki kea posted a video

This Woman DESTROYED Harley-Davidson's Future Forever

This Woman DESTROYED Harley-Davidson's Future ForeverWelcome to Ride Radar – Your Frontline Source for Motorcycle Deals, Trends & Market Mayhem.Looking for t...
Jul 23
tjdavis posted a photo
Jul 23
Burbia posted a status
"Who knew releasing the MLK files and literally deflecting, it ends up implicating himself with the Epstein Files."
Jul 21
Burbia posted a video

Dan Bilzerian DEMOLISHES MAGA Nutjob Patrick Bet-David on His Own Show

Watch as two powerhouse personalities collide in this no-holds-barred debate on one of the world’s most contentious issues. Patrick Bet-David, known for his ...
Jul 21
Doc Vega's 7 blog posts were featured
Jul 20
tjdavis's 2 blog posts were featured
Jul 20
Less Prone favorited tjdavis's blog post Track AIPAC
Jul 20

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted