Something unseen happened on US markets yesterday: S&P 500 lost 4%

The collapse in stocks in the US markets yesterday reached unprecedented levels. The S&P 500 index lost 4.1% of its value, ending at 2 648.94 points.
Losses in the other indices were no less, with the Dow Jones Index dropping by more than 1,175 points, or 4.6%. With a bit lower losses was the Nasdaq technology index, which lost 3.8% of its value.
From now on, the good news for investors is that the long-awaited correction is a fact, and even painful, may not be particularly long. The bad thing is that it is still unclear whether this is the beginning of something more serious as a trend in financial markets.
The broad index S&P 500 has already lost nearly 10% of its peak. So, the statistics for long periods without a 3% correction, or 5% correction, is already in the history. The record session was interrupted, so counting could start again.

US indexes with new records after the growth of energy companies

The US indexes continued their record-breaking series last week. This time, energy companies were at the center of the growth. They were backed by the Brent price rise to more than $70 a barrel.
US crude oil also saw significant growth, adding 1.6% to its value, to $64.58 a barrel or its highest level since December 2014.
A surprise drop in US oil production and a reduction in raw material stocks in the world's largest economy have helped to raise the price of "black gold."
Shares of leading US energy companies have seen significant growth, contributing to the rise in indices. Chevron shares added 3.2% to its value, and Exxon - 1.5%.
S&P energy index rose 2.2%, which was the biggest increase for more than seven months.
Otherwise, the Dow Jones Industrial Average index added 119.54 points to its value, or near 0.5% to a new record value of 25,488.67, while the broad S&P 500 rose 15 points to 2,763.29 points.
Technological Nasdaq Composite index also rose to a new record, adding more than 30 points to its value, or 0.4% to 7 182.20 points.
The US indices broke off on Wednesday a winning series of six consecutive sessions as a result of rumors that China will delay buying US government bonds.
Investors, however, have turned their attention again to the expected good results of US companies, which will come into full force very soon.

Are tax reliefs not fully calculated in stock prices?

After months of delays and postpones, tax cuts are getting closer to reality. They, to a large extent, were at the base of the growth of US indices, leading them to new historical records.
But JPM, the US investment bank, has good news for the investors - the growth is not fully reflected in stock levels.
In a letter to investors on Monday, bank analysts said tax cuts were reflected in just 50 percent of stock levels. This gives space for the index to rise to 2,800 points by the first months of next year, according to analysts.

Same with the leading US indices

US stocks rose, and DOW Jones gravitated around the 22,000 psychological level, with technology and finance companies leading the market upward after weakening tensions between the US and North Korea.
Dow Jones Industrial Average added 144 points to its value to 22002 while the main push came from Goldman Sachs Group (+ 1.56%) and Visa Inc (+ 1.78%). For the index, the day ended at 21993.71 or by +0.62%.
The S&P 500 increased by about 1% to 2465.84 or around 24 points. All 11 sectors increased. The biggest ones were in tech stocks.
The Nasdaq Composite Index advanced by 81 points or around 1.3% to close at 6340.23.

22,000 points for Dow, traders are betting for a serious shock on the markets

 Dow Jones hit 22 000 and currently is sliding around that key level. The story is the same - new tops for US indices, or minor changes without the absence of more serious movements in either direction. This makes the market extremely calm and seemingly "sure".
Not in that opinion, however, are the traders. They are betting for a shocking event, at least when judged by trade in the volatility index. Traditionally, the VIX index is rising at moments of market shocks.
And bets on such events are the highest for nearly two years. This is in the middle of near-record low values ​​of the volatility index.
Investors turn to the historical performance of US indices and widely accept the idea of ​​an event that will shake the market.
In addition, they rely on the two  historically worst months - August and September - to repeat again and surprise investors. Especially in the absence of a more serious adjustment over the past few years.