Super Stock Selloff
DOW JONES GIVES BACK GAINS, PLUNGES 317 POINTS
The Dow Jones industrial average plunged by a whopping 317.06 points (1.8 percent of its total value) on Thursday, erasing the gains it made during the last two months and putting the index in the red for 2014. Meanwhile the Nasdaq was down 98.13 points (2.09 percent) and the S&P 500 was down 38.41 points (1.95 percent).
That’s surprising news considering the relatively solid gross domestic product number the U.S. economy put up earlier this week.
So … does this mean the “Bears” are back on Wall Street?
That remains to be seen. Thus far stocks have been immune to the sluggish “recovery” in jobs, incomes and consumerism. The Dow in particular has been scraping the stratosphere – hovering at or above 17,000 points for the better part of the last month. In fact market gains wildly outpace the growth of the broader economy – prompting many analysts to warn of an impending crash.
Errr … “correction.”
A brutal month for European stocks – including a 1.7 percent drop in the Stoxx Europe and a 4.3 percent decline in Germany’s DAX didn’t help, nor did the imminent default of the Argentinean government on the debt it owes a number of hedge funds.
We hope stocks stay strong … just as we hope for a rise in economic output, employment and wages. Theoretically, that would mean a reduction in dependency. Of course as we’ve pointed out ad nauseam in the past, that’s not the road down which our “leaders” are taking us.