“Let’s see what tomorrow brings, but again we have to look at how good the market has been and we can’t let one day ruin that and we have to stick to our long-term strategy”, said LeMere.
Yesterday’s heavy sell-off in United States markets followed mounting investor nerves, with global markets having retreated from all-time highs.
The Dow Jones Industrial Average opened nearly another 2 percent lower on Tuesday after two days of heavy losses that have undermined faith in the USA stock market’s nearly decade-long rally.
Markets were screaming red in Monday’s trading session, continuing a steep decline that started February 1. Amazon, whose stock has soared in the past year, declined 2.8 percent. Japan’s Nikken was off 4.73%, while China’s Hang Seng Index fell more than 5%.
But lower prices tend to feed on lower prices and create a cycle.
Shares in other regional markets also were lower.
The sudden drop was set in motion by increased interest rates and investors reacting to concerns of returning inflation.
The Dow ended at 24,345. The Standard Poor’s 500 index, the benchmark most professional investors use, lost 73 points – or 2.7% – to 2,686, on track for its biggest loss since June 2016.
The Australian market fell as expected in the wake of the news from Wall Street, shedding more than 2.5 per cent inside the first half-hour of trade. It was down 872, or 3.4 percent, to 24,651.
Both the Dow Jones industrial index and the SP 500 had erased their gains for this year on Monday. The swings came one day after the steepest drop in 6 ½ years.
Some sectors also showed weakness, including banks following the punitive action by the Federal Reserve against Wells Fargo.
The sell-off extended to the broader SP 500 which fell by 113 points (or 4.1 per cent) to 2,649.
Bond yields slipped after moving sharply higher Friday.
He said that the economy had been seeing “the fastest rate of growth in the economy that we’ve seen in a decade” in addition to a fast rate of wage growth. For this calendar year, the SP is down.9 percent, while the Dow is down.8 total. Markets fluctuate and the Dow is still more than 20% higher than it was a year ago.
‘At the end of past year margin debt levels on USA stocks were at record highs, helping fuel the rise we’ve seen in the last few months, ‘ he said.
The selling on Wall Street has left the stock market on the verge of a “correction”, which signifies a 10% retreat from a previous high.