What’s more, analysts now expect those strong earnings to continue, up another 26% this year, an outsized gain that can be attributed in part to the deep corporate tax cut but also to strong global growth.
On Tuesday morning, Japan’s Nikkei index plunged 4 per cent while the SP/ASX 200 in Australia dropped 3 per cent.
-The Bloomberg Dollar Spot index fell less than 0.05 percent. MGM Resorts International was down $1.18, or 3.4 percent, to $33.50. The Dow is up 23 percent over that time, the SP 500 17 percent.
Signs of trouble ahead would include high inflation, rapidly rising interest rates and runaway property prices.
All told, since peaking at 26,616.71 on January 26, the Dow Jones fell 8.5%, to 24,345, by February 5. The Dow Jones industrial average fell as much as 500 points in early trading, bringing the index down 10% from the record high it reached on January 26. The Nasdaq’s loss has lasted the entire week, taking its decline to 3.7%.
Bond yields in the United States have also risen in recent weeks, typically a signal of higher rates.
On Monday, the Dow suffered its worst ever one-day point decline, closing down 1,175 points in a remarkable fall from grace.
Monday’s drop was bad, but there were worse days during the financial crisis.
The original trigger for the U.S. stock market sell-off was a sharp rise in USA bond yields late last week, after data showed United States wages increasing at the fastest pace since 2009.
Shares are taking a beating in Asia after the biggest drop in the Dow Jones industrial average in six and a half years.
The slide Monday brought the Dow back just below 25,000 points, a level it first crossed a month ago.
After appearing to have begun recovery from the early week sell-off, the markets took another big dip Thursday. SP 500 futures also dropped 1.1 percent, to 2,665.70.
The biggest losses went to high-dividend companies including utility and real estate companies, as bond yields increased after a sharp drop on Monday. U.S. Treasury bond yields have been so low that many stock dividends are paying better. Brent crude, the benchmark for global oil prices, lost 76 cents, or 1.1 percent, to $66.86 a barrel in London. The British FTSE 100 index fell 2.6 percent.
That usually means that the Federal Reserve will start increasing interest rates.
The Dow and SP each fell about 1 percent at the first bell before quickly clawing back those losses.
-Britain’s 10-year yield fell four basis points to 1.521 percent, the biggest fall in nearly five weeks.
In other commodities trading, wholesale gasoline remained at $1.77 a gallon. Industrial companies were also falling.
Benchmark U.S. crude lost 65 cents to $60.50 per barrel in electronic trading on the New York Mercantile Exchange.
This is how many stocks in the SP 500 index have already lost at least 20% of their value in the midst of this sell off, according to CNBC.
The fall in the Dow Jones completely erased any gains made since the start of the year. The Nasdaq composite lost 52 points, or 0.7 percent, to 7,189.