Wednesday 31 January 2018

Dive for US indices

The record start of the year for the US indices could not last forever. And that was known by all market players. So, yesterday's stock sellouts should not be surprising to investors.
The Dow index lost 360 points, or 1.4% to 26 076.89 points, and the broad S&P 500 declined 1.1 percent to 2 822.43 points. This was the biggest drop for broad index since August last year.
Serious sales also has the technological Nasdaq, falling 0.9% to 7 402.48 points.
The big winner in this case was the volatility index, which is already over 40% above its lowest levels last month.
What were the reasons for yesterday's correction, in a state of good performance from US companies? Many and various. From the general belief that the growth since the beginning of the year has been excessive and too fast to the expectations of an aggressive policy by the Fed and the change of leadership of the reserve, which traditionally leads to shocks, at least historically.




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