Dow Falls 530 PointsMarkets were way down in trading today, falling more than 3% in a global plunge. The Dow dropped 530.94 points and closed at 16,459.75. The NASDAQ led the day in real losses, falling 171.45 points to close at 4,706.04. The S&P 500 was down 64.84 points and closed out the trading day at 1,970.89.
In overseas trading, markets fell nearly as much as they did here. Japan, London, and Germany each lost about 3% in trading today. China dropped 344 points, or 1.54%, and closed out the trading day at 22,408.04.
Dow Plunges 531 PointsThe big story of the day is the Dow's freefall, which started at the beginning of the trading day and continued throughout.
The Chinese currency manipulation drove a downturn in markets earlier this week. It sent overseas markets spiraling and took its toll on domestic markets as well. Still, the issue is old enough that I doubt it was the primary cause for today's downturn. However there's little doubt that it played a contributory part in today's slide.
The second major contributing factor is the looming Fed meeting. That's got investors on edge, as they're worried that the Yellin-led Fed is about to hike prime interest rates. The move will end up affecting everything from bond yields to mortgage rates, and investors are rightly wary of change. Still, change is coming, whether the market likes it or not -- and it may, in fact, be long overdue.
The third contributing factor for today's crash is the price of oil. Although I doubt it played as much of a role in today's selloff as the looming Fed hike did, since oil is at a holding point right now. In fact, oil hardly moved during today's market downturn. Still, the price of crude is hurting energy companies as well as the Energy Minerals sector as a whole. It's just too cheap for American companies to make much of a profit from our energy-intensive sources like oil sands.
The three major fears united to cause a big selloff in the markets today. It wasn't the best close to this rocky week that we could have asked for. Hopefully, when Monday comes, investors will be able to spot deals in all of this wreckage, because another few days like this could cause a full-fledged panic.
Published on Aug 21, 2015By Aaron Phillips