Here's Where The Stock Market Was One Week Ago

Here's Where The Stock Market Was One Week Ago

At midday, the market was on pace for its worst weekly decline since October 2008, at the height of the financial crisis.

However, the falls seen in early trade in Europe were not as steep.

On Monday, the Dow Jones experienced its largest ever single-day point decline.

During Friday's session alone, the S&P 500 swung from as high as up 1.5 percent to as low as down 1.9 percent, echoing the big swings of the past week. Gold, for example, was up 0.4 percent at $1,343 an ounce.

Bond prices fell slightly. Yields on long-term USA government bonds have risen to four-year highs as economic growth and inflation pick up.

US President Donald Trump, who has repeatedly praised Wall Street gains during his first year in office, on Wednesday dismissed recent market rout, saying stocks should not be falling amid strong economic news.

The last time the market had a correction was two years ago, which is seen as an uncommonly long time.

A correction is a 10% decline in stocks from a recent high.

Two of the USA stock market's three major indexes are in correction territory now.

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The Dow Jones industrial average lost 1,032.89 points, or 4.1 percent, to 23,860.46. It was up as much as 349 in early trading.

More than $2.5 trillion in value has been knocked off S&P 500 shares since then, adding to the sense that the tide may be changing after nine years of nearly constant gains for Wall Street. Even with the rebound, the Dow has fallen 6.4 percent since the record set on Jan 26.

Bond prices have plummeted and yields spiked on concerns an uptick in inflation forecasts might push the Federal Reserve to act faster in tightening monetary policy than Wall Street had expected.

This caused a global sell-off at the start of the week, with losses recorded across European and Asian markets, though stocks appeared to have staged a recovery since.

The Dow Jones industrial average was up more than 200 points at the day's open with S&P 500 and the Nasdaq composite also up 1%.

Boeing (BA.N) and United Tech (UTX.N) rose about 1.5 percent, providing the biggest boost to the Dow, while Amazon's (AMZN.O) 1 percent rise helped lift the S&P.

"The mood on the floor is relief", said FTN Financial chief economist Chris Low, adding that the Dow's "violent" descent on Monday - at one point losing 700 points in a few minutes - would not soon be forgotten.

"We can not go straight up or straight down. we need both buyers and sellers to really pull and find the right place where our market should be at", said Jonathan Corpina, a trader at the New York Stock Exchange. The VIX Volatility Index was lower at 27.73 for a loss of -2.25 points or -7.51%.

Among stocks, Walt Disney was up 1.9 percent in premarket trading after the media company's quarterly profit topped forecasts.

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