As I write this, the Dow Jones Index is down approximately 615 points with 40 minutes left of trading in the day
This is a mere 2.3%, so it isn't huge when you are looking at the index as a whole sitting at around 26,000, however there are a number of
concerning things we are seeing play out:
**US Treasury Yields continue to rise - the 10 year was at 3.4% yesterday and is hovering at around the same right now
**The Federal Reserve needs to raise the Federal Funds Rate (currently at 2.25%), which means it costs a lot more to maintain debt, which governments,
individuals, and companies have loaded up on after 10+ years of "cheap" money with near-zero interest rates
**The S & P 500 has had the most "down" days in a row since sometime in 2016 (not a huge talking point, but notable nonetheless)
**As I mentioned in B, the US government has loaded up on debt (as have many other nations), and consumers are also loaded up on debt in the forms
of student loans, auto loans, credit card debt, and mortgages
ETA: After hours trading has the DOW sitting bruised up a bit at 831.83 points down, or a 3.15% drop. We'll have to see how the week finishes up.
Keep in mind that a 10% drop would constitute a "correction", so this isn't even a significant correction yet.
DOW Futures are now down over 1,000 points for tomorrow, that would be a total of over 1,830 points if the DOW closes that low tomorrow:
Tomorrow looks to be off to a rocky start for US equities! CNBC Futures Charts
I look forward to hearing from my fellow market watchers and ATS friends about what we are seeing. The next 2 days will be telling.
Is this the begin if a bull market? Is it still the calm before the storm?
Is this nothing major at all and we will see things recover in a few days/weeks? Let's hear it!
edit on 10-10-2018 by FamCore because: Updated Numbers & Added Links about Futures