Wall Street and Dow Jones faced its biggest one-day decline in years and here’s what you need to know.
This Monday was a scary day at Wall Street.
The Dow Jones plunged almost 1,600 points, its biggest ever one-day point drop.
As panic loomed over New York, buyers responded and limited the damage, however, the Dow Jones Industrial Average registered its worst closing point decline on record by the end of the day.
Regarding the historic Wall Street day, many investors have reacted to the fact with various recommendations and view-points, these are some:
Reactions to the Dow drop
For the JPMorgan office, Monday’s flash crash will “contribute to further outflows from systematic strategies in the days ahead (volatility targeting, risk parity, CTAs, short volatility).
Bruce McCain, chief investment strategist at Key Private Bank, said “People are dealing with the shock of seeing real inflation for the first time in a while”.
As for Ken Moraif, Certified Financial Planner from Money Matters in Plano, Texas, he told CNN Money: “This is something that is attention getting, but not yet something you should react to.”
Andres Garcia-Amaya, CEO of wealth management firm Zoe Financial, has said: “The stock market is throwing a tantrum (…) Take a deep breath… I know it’s been a while since we had a day like today, but nothing has really changed from a fundamental standpoint.”
On Monday as well, the price of bitcoin fell below $8,000 for the third time in four days.
As of now, $60 billion of valued have been erased from the cryptocurrency market in just 24 hours.
Now, major banks are stopping people from buying bitcoins with credit cards.
Although the U.S. economy is healthy, investors are saying the stock market was long overdue to take a breather, was this finally it?