Breaking: The Dow Jones Drops 1,500+ Points, The Biggest Intraday Drop In History - Sensationalist Headlines

[quote=CNBC] U.S. stocks fell sharply in volatile trading Monday, extending a steep sell-off from the previous session. The Dow Jones industrial average shed 1,178 points and briefly declined more than 1,500 points. The 30-stock index also briefly traded flat earlier in the session. The Dow also broke below 25,000 and erased its 2018 gains. "Breaking the early lows of the day means the correction could go on for longer," said Art Cashin, UBS director of floor operations at the New York Stock Exchange. The S&P 500 pulled back 4.1 percent to break below 2,694. The broad index had traded positive earlier on Monday as the tech sector briefly rose. The S&P 500 also traded down more than 5 percent from an all-time high set last month and broke below its 50-day moving average, a key technical level.[/quote] [url]https://www.cnbc.com/2018/02/04/us-stocks-interest-rates-futures.html[/url] And you thought Cryptocurrency was volatile! EDIT: Wikipedia has the exact swing ([url]https://en.wikipedia.org/wiki/List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Average[/url]): [img]https://i.imgur.com/csju6hW.png[/img]

Sorry to go political straight out of the gate, but I do want to see how the President explains this after boasting about the stock market at every opportunity

[QUOTE=Bob The Knob;53110685]Sorry to go political straight out of the gate, but I do want to see how the President explains this after boasting about the stock market at every opportunity[/QUOTE] Rapidly inflating the stock market makes it volatile (well, more than before). It needs a solid but sure growth for it to be stable.

Talking about stock drops in terms of actual price instead of percentage is very misleading. It dropped 5% today. On October 19, 1987, it dropped 508 points, but at the time that represented a drop of 22.6%. Most articles I'm reading about this say the drop is due to investors moving money out of stocks and into bonds after news of strong job and wage growth in January. The economy is fine, just rebalancing and correcting.

[QUOTE=Bob The Knob;53110685]Sorry to go political straight out of the gate, but I do want to see how the President explains this after boasting about the stock market at every opportunity[/QUOTE] Obama did it.

[QUOTE=Bob The Knob;53110685]Sorry to go political straight out of the gate, but I do want to see how the President explains this after boasting about the stock market at every opportunity[/QUOTE] He's still "won" because stocks are still way up. Also the graphic in the OP is pretty misleading since percentages are what matter, not raw value. Losing 1000 would be a death sentence if the DJI was at 2000.

Also, gotta add, BUY THE DIP.

Wonder what caused this? I know the market's been over-extended, but there's normally some specific event that triggers a break like this. IIRC, a lot of companies' annual reports have been coming out, was there a particular one that was bad? I don't see how it could cause it but the timing of the cryptocoin implosion seems too close to not be a suspect. [QUOTE=Bob The Knob;53110685]Sorry to go political straight out of the gate, but I do want to see how the President explains this after boasting about the stock market at every opportunity[/QUOTE] Fake news! Deep state! Clinton conspiracy! The memo proves it! (((They))) want us to fail bigly - but we'll #MakeAmericaGreatAgain! Believe me! Either that, or he ignores it in favor of bitching about something trivial. I hear some of the Eagles players won't be doing the traditional post-Super Bowl White House visit - I'm sure he'll either whine about it, or boast about having the best attendance ever.

[QUOTE=thelurker1234;53110703]He's still "won" because stocks are still way up. Also the graphic in the OP is pretty misleading since percentages are what matter, not raw value. Losing 1000 would be a death sentence if the DJI was at 2000.[/QUOTE] In this case its significant because it has already gone below 1/6th of the entire growth of last year. That's a significant setback, even if its obviously not catastrophic. [editline]5th February 2018[/editline] 4.60% drop for the DOW considering what it's currently at is absurd lmao

[QUOTE=ForgottenKane;53110722]In this case its significant because it has already gone below 1/6th of the entire growth of last year. That's a significant setback, even if its obviously not catastrophic. [editline]5th February 2018[/editline] 4.60% drop for the DOW considering what it's currently at is absurd lmao[/QUOTE] I never said it wasn't significant tho. But "And you thought Cryptocurrency was volatile!" and a chart implying that it's the worst drop ever are a wee bit hyperbolic 🤔

It's snowing as hell in Msk here. Bitcoin drops, Snow falls, DoW plummeds down... ...it all goes down. FP down soon?

I mean, 5% is a lot, but it still seems like healthy stock market fluctuations to me. Talk to me when it drops 10 or more percent.

[QUOTE=Protocol7;53110763]I mean, 5% is a lot, but it still seems like healthy stock market fluctuations to me. Talk to me when it drops 10 or more percent.[/QUOTE] 5% is a lot for a single day. Anything more than 2% is usually newsworthy (note: yesterday was a 2.5% drop on its own).

lol just my luck. When I first learned about the stock market in school, we did a little project where we pretend to buy stocks, then sell them for a week. That was the week of the big crash in 2008, so no one came out green after. 10 years later, my roommate tells me about the Robinhood app, and I actually buy stocks, and there's another huge crash.

[QUOTE=Bob The Knob;53110685]Sorry to go political straight out of the gate, but I do want to see how the President explains this after boasting about the stock market at every opportunity[/QUOTE] It was the fuckin democrats, even though republicans control like every part of the government right now.

:conspiratard: I pulled out last week thank god.

[QUOTE=gman003-main;53110775]5% is a lot for a single day. Anything more than 2% is usually newsworthy (note: yesterday was a 2.5% drop on its own).[/QUOTE] Eh, the S&P only dropped 4.1%, which is less awful than 5%, and the stock market has been on a nearly linear increase since Q4 2016. It was overdue for some correction. For reference, though, the S&P actually gained 7.5% for January, so we are still at a net positive for the year. I can't see much reason to be alarmed.

should i start investing in canned foods, bottled water, toilet paper, and ammunition?

[QUOTE=Ninja Gnome;53110804]should i start investing in canned foods, bottled water, toilet paper, and ammunition?[/QUOTE] Not any more than you usually should (it *is* a good idea to keep a decent stock of non-perishable essentials). Definitely not for a one-day event. If it keeps sliding tomorrow, and the next day, and the next... I don't think we'll get to the point where stockpiling ammo would help, but we could be headed for a recession/depression. It's far too soon to be sure.

[QUOTE=gman003-main;53110721]Wonder what caused this? I know the market's been over-extended, but there's normally some specific event that triggers a break like this. IIRC, a lot of companies' annual reports have been coming out, was there a particular one that was bad? I don't see how it could cause it but the timing of the cryptocoin implosion seems too close to not be a suspect. Fake news! Deep state! Clinton conspiracy! The memo proves it! (((They))) want us to fail bigly - but we'll #MakeAmericaGreatAgain! Believe me! Either that, or he ignores it in favor of bitching about something trivial. I hear some of the Eagles players won't be doing the traditional post-Super Bowl White House visit - I'm sure he'll either whine about it, or boast about having the best attendance ever.[/QUOTE] The cause is pretty evident. There was strong job and wage growth in January. This means people are anticipating the federal reserve raising interest rates. This, in turn, suggests an increased yield from bonds. Investors are rebalancing by taking money out of the stock market and putting it in to bonds. Keep in mind the market has been on an incredible bull run since the election. A correction was overdue and expected.

[QUOTE=abananapeel;53110784]lol just my luck. When I first learned about the stock market in school, we did a little project where we pretend to buy stocks, then sell them for a week. That was the week of the big crash in 2008, so no one came out green after. 10 years later, my roommate tells me about the Robinhood app, and I actually buy stocks, and there's another huge crash.[/QUOTE] This drop is very temporary. Just stick through it and you'll be profitable again soon enough. Just remember - your losses aren't real until you sell. You may also want to consider buying more (if you can safely do financially) while the price is low to lower the average cost per stock that you paid.

[QUOTE=Dr. Evilcop;53110851]This drop is very temporary. Just stick through it and you'll be profitable again soon enough. Just remember - your losses aren't real until you sell. You may also want to consider buying more (if you can safely do financially) while the price is low to lower the average cost per stock that you paid.[/QUOTE] This isn't that huge of a crash. Plus, you should be investing with a timeline of years in mind, if not decades. This will likely recover in a few months. Even if this did somehow end up being a huge recession, you'd likely recover your losses in a couple of years. The market hit pre-recession levels about 5 years after the 08 recession.

Imagine living in an economic system in such a ridiculous bubble that even workers making more money (that they haven't gotten in decades) causes damage. Seriously fucked up.

[QUOTE=Ninja Gnome;53110804]should i start investing in canned foods, bottled water, toilet paper, and ammunition?[/QUOTE] Learn to grow your own food, fish/hunt with minimal supplies, and get basic understanding of bartering. Honestly, the chances of this sliding into a red zone where civil collapse or outright insurrection are way of the land are pretty eh. Any significant crash will definitely lead to further paramilitarization within this country, and I suspect we'll see a much more direct action from said paramilitary groups. It is also very, very likely that we'll see Third-Way positions becoming popular again. As they were in 2007 ~ 2009.

From what I learned in my Engineering Economics class, my professor gave us a heads up when it comes to recessions. I can't quite remember what the exact numbers were, but it involves the federal 10-year bond interest rate. Months before it hits, the bond interest rate hits a certain point (I believe he said near 1.5 or so), which is an indicator that things are slowing down. So for brokers using that method, they tend to use it as an indicator to start prepping for it. As of right now I believe it is currently hovering around 2.8. So unless it was a major selling day where a panic set in, the trend should hold up what Harbie said about it just being an adjustment and shuffling around of the system. So this would technically be a good time to invest, at least in this amateur non-economist's eyes lol as buying later as this trend has been upward, may be a bad choice.

[QUOTE=Tetracycline;53110931]Imagine living in an economic system in such a ridiculous bubble that even workers making more money (that they haven't gotten in decades) causes damage. Seriously fucked up.[/QUOTE] Except this isn't "damage." Corrections like this are like your body getting a fever while fighting off a cold. It sucks for a while but in the end you're better for it. "Better" in the sense that there's less likely to be a dramatic recession/depression tier drop in the near future.

What does this mean for your average Joe working paycheck to paycheck?

[QUOTE=Man in the Moon;53111085]What does this mean for your average Joe working paycheck to paycheck?[/QUOTE] Does he have a 401k? He probably took a hit, and will get it all back in the next few months. Does he not have a 401k? It won't have any effect whatsoever.

[QUOTE=sgman91;53111089]Does he have a 401k? He probably took a hit, and will get it all back in the next few months. Does he not have a 401k? It won't have any effect whatsoever.[/QUOTE] If they have a 401k or money in an index fund/any stocks, they've lost some net worth and will recover in a few months. If they don't have a 401k/IRA/money in the market, nothing. But they should probably put some money into an IRA or index fund. :^)

[QUOTE=sgman91;53111089]Does he have a 401k? He probably took a hit, and will get it all back in the next few months. Does he not have a 401k? It won't have any effect whatsoever.[/QUOTE] Another day not effected, score one for being broke.