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06 Abril 2018, 05:37 | Dolorita Barahona
Why Has the Dow Jones Plunged 500 Points in One Day?
During the regular session, the Dow .DJI and the S&P 500 .SPX posted gains for a third day in a row, the longest streak in about a month, as investors' worries of an escalating trade conflict between the United States and China began to ease. The early-morning hours, meanwhile, are supposedly dominated by mom-and-pop investors trading on their gut instincts and reactions to the news that occurred overnight. Oil prices dropped Wednesday in part because investors were nervous that a trade war would slow down growth in the global economy, which would reduce demand for oil.
Despite tradewar fears, the economic backdrop remains bright and corporate earnings are still poised to grow.
The S&P 500 opened below its 200-day moving average, a key technical level, and the Dow lost as much as 510 points before recovering some ground to stand 250 points lower at.
The Nasdaq declined 193 points, or 2.7 percent, to end at 6,870 and was down 0.5 percent year-to-date.
"There's also a kind of negative tone over the market, the S&P is getting crushed", said Ken Polcari, Director of the NYSE floor division at O'Neil Securities in New York.
State Street rose 1.2 percent Tuesday.
Microsoft rose 1 percent and Amazon climbed 1.3 percent. Markets in China are closed on Thursday and Friday. When trading began Wednesday, declines were closer to 2 percent.
They ended the day down 4.4 percent and 3.4 percent, respectively, since the beginning of this year. "Markets have mostly been able to digest the news with the sectors targeted and the schedule already known", said Tai Hui, chief market strategist for Asia Pacific at J.P. Morgan Asset Management.
Micron grew profit 666% and 213% vs. year-ago levels in the past two quarters as sales soared 71% and 58%.
So far, neither side is backing down. But the tariffs from both countries remain only threats and plans. Caterpillar, which made a small gain Wednesday, rose another $1.67, or 1.2 percent, to $146.85. The Nasdaq composite added 44 points, or 0.6 percent, to 7,086. Rough Cut (no reporter narration).
The falls extended recent declines triggered by increased debate in the US about competition and privacy rules, as well as tensions over trade. Investors are also worried about the company's finances, as it spends heavily to ramp up car production. Gold rose on haven demand. That sent interest rates higher, which helped banks. An April 2017 estimate from Citigroup found if costs were fairly allocated, Amazon should be paying $1.46 more per delivery, according to The Wall Street Journal.
U.S. West Texas Intermediate (WTI) crude futures fell 47 cents to $63.04 a barrel, a 0.7-per-cent loss. At Brouwer & Janachowski, an advisory firm that manages $1.4 billion, CEO Stephen Janachowski said he has received surprisingly few calls from panicked clients since market volatility surged higher in February.
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Pleasing Stock: Amazon.com, Inc. (NASDAQ:AMZN)
Therefore 64% are positive. ( NASDAQ : AMZN ) has 76 ratings reports on 5 April 2018 according to StockzIntelligence. The Seattle-based company has been going through global restructuring and sacked about 60 employees from Indian arm.
Thursday forecast: overnight snow could bring up to 3 inches
The sky will be clear in the evening then clouds will overspread the state toward dawn in advance of the next storm system. And threats of snow - yes, more April snow - in parts of New Jersey and eastern Pennsylvania on Friday and Saturday .