The mood of the market has certainly switched,” said J.J. Kinahan, chief derivatives strategist at TD Ameritrade,
Really, what could have done that?
The Dow Jones closed below 13,000 for the first time in three months. It’s been in freefall for two days and the declines are leaning political.
The Nasdaq and S&P 500 also both sank more than 2%, clocking their worst drop since early June. Coal and for-profit education stocks led the declines on both indexes.
The S&P 500, considered one of the best barometers of U.S. equities, tumbled 2.4% on Wednesday in its worst day on a percent basis since June. The losses added up in late trading on Thursday as well, with the S&P sinking 1.2%.
That’s just the news for yesterday. This is the news from the day before.
The Dow Jones industrial average is down 2 percent, putting it on course for one of its worst one-day drops following a U.S. presidential election. The biggest, in 2008, came in the midst of the financial crisis on the day after President Barack Obama won his first term.
Slowing corporate profits, the remnants of Superstorm Sandy and the ramifications of the “fiscal cliff” in Washington are expected to result in at least two quarters of slow or no growth
Strategas earlier this week said it expects a recession early in 2013, and University of Maryland economist Peter Morici said that “the President and Congress will not be able to raise taxes — be those on the wealthiest of the wealthy or anyone else — and cut spending without risking a second recession, deeper and more painful than the Great Recession.”
I know. Let’s borrow more money from China. That plan has been working great until now. But somebody’s gotta pay for all the Obamaphones.