Tech stocks like Amazon and Apple led the drops…..
Stocks dropped in afternoon trading Monday, pulled down by a broad sell-off in technology companies. Saudi Arabia’s planned cuts in oil production also revived concerns of a global slowdown.
The Dow Jones Industrial Average lost 389 points, or 1.5 percent, to 25,600. The Standard & Poo’rs 500 index declined 1.27 percent, while the tech-heavy Nasdaq composite dropped percent 2.03 percent. The Russell 2000 index of smaller companies gave up 1.13 percent
Crude oil prices were headed higher, snapping a 10-day skid, following Saudi Arabia’s announcement.
Apple, Amazon and other big names fell. Banks and consumer-focused companies, and media and communications stocks also took heavy losses.
Investors bid up shares in utilities and other traditionally safe-haven stocks. NRG Energy climbed 4.7 percent.
“It’s a very typical run to the safe assets, run to utilities, run to Procter & Gamble and run to Pepsi-Cola,” said Ron Weiner, managing director and partner of RDM Financial Group at HighTower Advisors. “But when you analyze in the clear light of day, these are trades you will want to get out of when market starts behaving a bit more normally.”…
Correction….
This post heading corrected from early amount of the market drop….
The stock market can’t drop 500%, the most it can drop is 100.00% to zero, not below.
The whole idea of a joint-stock company or corporation is that the most that its owners can lose is the entire value of their holdings in that particular company or corporation alone, rather than their entire personal worth, as with an unincorporated private business or a seat in Lloyd’s of London.)
If one of the indices dropped 500 points, it doesn’t seem to have been in a single day, but perhaps over the week, or several months.
Thanks for the look out DSD
Correction made