Stocks take Tuesday tumble
First reported by Wsj.com
- Amidst worries of an economic slowdown and confusion over the U.S.-China trade agreement, stocks took a nosedive on Tuesday as the Dow Jones industrial Average fell nearly 800 points.
- The plummet, representing a 3.1 percent decline, marks the stock market’s worst day since October 10th.
- Analysts say stocks began their downward spiral just after Doubleline Capital CEO Jeffrey Gundlach was quoted as saying the economy “is poised to weaken.”
- Do you think the stock market is too reactionary to little things?
- Would a simple comment like the one made by Gundlach cause you to offload your stocks?
The Dow Jones Industrial Average fell by almost 800 points and bond yields plummeted as investors’ doubts about the US-China trade truce reinvigorated anxieties about economic growth rates.
Investors have largely withdrawn from stocks and industrial stalwarts, including Boeing and Caterpillar, have suffered severe losses. Apple and other technology companies have also slipped, bringing the Nasdaq composite back more than 10% below its level in August.
The losses were fuelled by the lowering enthusiasm for the 90-day cease-fire tariff over the weekend, several investors said, raising concerns that the ongoing disagreement between the two largest economies in the world could unravel economic growth in the US and put additional pressure on Europe and Asia, which are already struggling.
According to Matt Peden, Chief Investment Officer of GuideStone Capital Management, Money Managers received few panicked phone calls from investors, although more are afraid of risk due to fears of economic slowdown or worse â a recession.
More investorsâincluding those at GuideStone, which manages $13.2 billion, and other money management firmsâpark their equity and transfer that money into bonds or even cash in order to better preserve its capital.
DOW Plunges 800 Points On Fears of Slowing Economic Growth, Banks Lead The Decline
Dow drops almost 800 points, financial planner explains why
– Business Headlines –
* FT: May suffers double defeat on Brexit deal
* Nikkei: Trade war traps Taiwan between two superpowers
* WSJ: Stocks Drop on Trade Deal Doubts, Economic Anxietyhttps://t.co/fpUyXxsZBC
— Ed van der Walt 🇿🇦🇬🇧 (@EdVanDerWalt) December 5, 2018
Keep in mind, this is after Trump and Republicans borrowed $1.5 TRILLION to give tax breaks to the wealthiest Americans. https://t.co/69bVX3tkYP
— Bryan LeBlanc 🇺🇸 (@Resistance2020) December 5, 2018
Dow Tumbles Nearly 800 Points as Investors Worry Over Trade, Growth https://t.co/MY8mcpmny0
— Reborn to spectrum of roll over and over (@Realblack212) December 5, 2018
People interested in slowing down the economy can dump stocks to intentionally trigger a bear market. Is that it, or is it a normal, cyclical adjustment?
Dow tumbles nearly 800 points as trade jitters return https://t.co/hj4iqUwDg7
— Michael J. Fell (@MichaelJFell) December 5, 2018