Traders witnessed the down fall of US stocks on March 21 as the Nasdaq and Dow recorded their worst performance since September. The Standard & Poor 500 index also did a steep slide within a single stock market session.
Drop all around
The DJIA or Dow Jones Industrial Average dropped 1.1 percent or 237.85 points to stop at 20,668.01. This is the steepest decline since the blue chip drop of 1.4 percent on September 13. The Standard & Poor 50 showed a dramatic fall, which can be compared to the traumatic days of October 11. The S&P dropped by 1.2 percent or 29.45 points to settle at 2,3544.02. The Nasdaq had a nightmarish run of dipping by 1.8 percent or 107.70 points. It ultimately settled at 5,793.83.
According to Ian Winer of Wedbrush Securities, positioning is the principal issue here. Everyone did identical trades and unwind of all these consensus trades accelerated all through the day. He added that the health care bill announced by the Trump administration must happen, as markets are keen for tax overhaul.
Steve Sosnick of Timber Hill/Interactive Brokers Group said that traders tried to rise up from the lows of March 20, but it did not sustain. However, there is no indication that the market is going for a sell-off. He opined that consolidation and profit taking is now happening. These have no correlation with weak markets. The hardest hit were the financial companies which dropped 2.9 percent and earned infamy as the day’s weakest sector. Other notable losers include Huntington Bancshares Inc. and KeyCorp with 6.1 percent and 6.5 percent respectively.
Investing with sense
According to Jack Ablin of BMO Private Bank, investors have become more sensible to the ways of President Donald J. Trump. Their enthusiasm has been much reduced as it becomes clear that a number of policies adopted by the Trump administration got stuck in legislative processes. He said that although investors have no plans of escaping, they are quick to adjust expectations.
The March 21 weakness stretched out the mild downtrend which stocks have suffered lately. March has seen about 16 trading days until now, including Tuesday. The losing streak of the benchmark index have been its lengthiest from early October, much ahead of the presidential election in the United States.