Dow Drops Again

In trading today, markets plunged nearly 4% in the fifth straight day of this latest downturn. The Dow closed the day down 588.40 points to 15,871.35. The S&P 500 led the day in losses, falling nearly 4%, or 77.68 points, to close out the day at 1,893.21. The NASDAQ also lost ground, dropping 179.79 points to close out the trading day at 4,526.25.

In overseas trading, things looked much the same as they did at home Most markets lost at least 4%, and each of the four major overseas exchanges lost more. Japan was down 4.61%, while Hong Kong lost 5.45%.
In Europe, markets fell by 4.70% in both London and Germany.

Downturn Continues for 5th Straight Day

Markets continued their downward trend for their fifth straight day today. The selloff was precipitated by a combination of factors, including Chinese currency manipulation, the falling price of oil, and worries over the Fed raising the prime interest rate. This marks the fifth straight day of falling markets, and today's drop has been the biggest to date.

Oil Below $40 per Barrel, Gas at 2009 Levels

Oil fell to near-record levels today, dipping down past $40 per barrel for the first time since the 2008 market collapse. The price at the pump fell as well, to a national average of $2.59 per barrel, the lowest levels we’ve seen since 2009.

The drop in oil is one of the reasons that the market has been down lately. The price of oil has fallen past all of the major support points and is now in free-fall. It's expected to keep dropping, falling into the wintertime. There is no indication that the price of oil is going to stop dropping anytime soon.

Over 1,200 Trading Stops Took Place Today

Trading stopped over 1,200 times today, with various stocks and securities triggering automatic halts. Markets automatically stop trading of any security or stock when a mass selloff begins in order to prevent huge panic-inspired drops in the marketplace. Still, it's unusual for so many different stocks to be halted in one trading day, with the last such halts taking place in 2008 when the market was undergoing an extreme correction.

AGL Resources (GAS) to be Acquired by Southern Company (SO)

One of the biggest movers of the day was AGL Resources (GAS) which announced that it is to be acquired by Southern Company (SO) in a $12 billion deal. AGL Resources posted a gain of 28.31%, or 13.55 points, to close the day's trading at $61.41 per share. The merger is set to create the nation's second-largest consumer energy provider.
Published on Aug 24, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2016. Content published with author's permission.

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