Bitcoin Looks To Gain Ground From Dow Jones 14 Month Low Point As Stock Market Plummets
14 Month Low For Dow Jones, As December 2018 Proves To Be One Of The Worst Month In A Decade
Dow Jones has moved below the 23,000 mark after October 2017 and many are saying that this is the beginning of the much anticipated economic crash looming over our heads.
The index is now down more than 10 percent for December, putting it on track for its worst monthly loss in almost a decade. The technology-heavy Nasdaq is now down almost 20 percent from the peak it reached in August. After steady gains through the spring and summer, stocks have fallen sharply in the fall as investors worry that global economic growth is cooling off.
“Equity markets are quickly approaching the capitulation phase after having broken below critical support,” said Sam Stovall, the chief investment strategist at CFRA Research.
Although the data is still in the grey area, it is pretty much anticipated by economists and analysts that Dow Jones and Nasdaq are approaching a short-term bear market. To add to the troubles, the increase in the rates of Federal Reserve has made it very difficult for businesses to borrow money.
Citi chief global equity strategist Robert Buckland says that the stock market decline has let to the slow down of the equity markets.
He said: “Equity markets are starting to think about the likelihood of a slowdown. But, it’s not Powell’s job to make the stock market go up. It’s his job to run a monetary policy on a mandate of growth and inflation, and the macroeconomic data is pretty robust.”
Politics also roiled markets. Investors were keeping watch on contentious talks in Washington, D.C., which raised fresh fears that lawmakers might not be able to agree on a deal to avoid a partial government shutdown this weekend.
The S&P 500 is now down nearly 16 percent and deep in so-called “correction” territory, defined as a drop of 10 percent or more from a high. The current correction is worse than the average price drop of about 14 percent in corrections during the post-World War II era.
It’s not only that the US markets are in trouble. Oversees markets like Australia, South Korea, and China are facing a similar fate as they see their economies weaken rapidly.