Analysts' predictions of a volatile day for Wall Street have held true during the first three hours of trading on Friday as stock prices shot up early on before meandering into decline through the middle of the day.
The Dow Jones Industrial Average reached a peak of 23,405 at 10.20am Eastern before plummeting nearly three percent to 22,750 by 12.25pm, 0.5 percent lower than when the market opened.
The S&P 500 index climbed to 2,500 by 10.20am but had dropped to 2,456 by 12.25pm, a decrease of 0.37 percent from market open.
The Nasdaq peaked at 6,578 at 10.20am before falling precipitously to 6,404 at 12.25pm, a 2.57 percent decrease from market open.
Traders are blaming the volatile prices on 'quadruple-witching' - when options on stocks and indexes as well as futures on indexes and single-stocks for the quarter all expire - which tends to raise volatility and trading volumes as investors replace expiring positions.
Friday's instability comes after two days of steep decline as stocks head for their worst monthly loss in nearly a decade in December, with all major US indexes down about 10 percent.
Stocks opened relatively high on Wall Street Friday as the market steadies following two days of significant losses. The Dow Jones Industrial Average peaked at 23,405 by 10.20am Eastern before plummeting nearly three percent to 22,750 by 12.25pm
The S&P 500 Index climbed to 2,500 by 10.20am but dropped to 2,456 by 12.25pm
The Nasdaq hit 6,578 at 10.20am before falling precipitously to 6,404 at 12.25pm, a 2.57 percent decrease from market open
The Federal Reserve's plan, announced Wednesday, to keep raising interest rates was an added headache for investors already fearful that trade wars and other geopolitical concerns would grind economic and corporate growth to a halt.
The US central bank's view that the economy is strong will be tested amid a slew of economic data, including third-quarter GDP and November consumer spending, the Fed's preferred measure of inflation.
Adding to the nerves was a chance that the government could be shut down unless President Donald Trump and Congress cut a deal before midnight on their long-running battle over funds for a Mexico border wall.
Volatility may rise again on Friday on account of 'quadruple witching', as investors unwind interests in futures and options contracts prior to expiration.
'The indices are headed for another volatile, negative session as options expirations, turmoil in the White House and a renewed possibility of a partial government shutdown continue to shatter the nerves of investors,' said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Analysts are bracing for another day of volatile stock prices on Friday, capping off a rough week for the market amid the threat of a US government shutdown and swelling concern of slowing global growth (file photo)
A five-day summary for the Dow (above) shows a steep decline over Wednesday and Thursday
The S&P 500 Index has dropped nearly five percent since the beginning of the week
The Nasdaq has seen similar declines this week, almost closing in a bear market on Thursday
In premarket trading Friday, S&P 500 e-minis were down 0.57 percent at 7.30am Eastern, falling for the seventh session in a row, their longest losing streak since November 2011.
Dow e-minis were down 0.46 percent and Nasdaq 100 e-minis were down 0.73 percent.
One silver lining was Nike Inc, whose shares jumped 8.5 percent in premarket trading after the company's quarterly results beat Wall Street estimates on strength in North America.
The three main Wall Street indices are already in correction territory, having fallen more than 10 percent from their record closing highs, and are closing in on bear market territory, when a security closes 20 percent below a recent high.
While the Nasdaq came within a whisker of bear market territory on Thursday, other segments of the market, including the Russell 2000 small-cap benchmark and the Dow Jones Transport Average are already in bear market territory.
Reports released Friday morning revealed the US economy expanded at a solid 3.4 percent annual rate in the third quarter, slightly slower than the previous estimate as consumer spending and exports were revised lower. The economy is expected to slow further in the current quarter.
The Commerce Department says growth in the gross domestic product, the economy's total output of goods and services, was revised down from an earlier estimate of 3.5 percent.
The still-strong performance followed a sizzling 4.2 percent advance in the second quarter and a moderate 2.2 percent increase in the first quarter.
Economists believe that economic growth is slowing in the fourth quarter to around 2.5 percent. But the overall GDP performance for the year will still be the best since 2005.
Link hienalouca.com
https://hienalouca.com/2018/12/21/stock-prices-shoot-up-before-crashing-back-down-as-wall-street-weathers-a-volatile-trading-day/
Main photo article Analysts’ predictions of a volatile day for Wall Street have held true during the first three hours of trading on Friday as stock prices shot up early on before meandering into decline through the middle of the day.
The Dow Jones Industrial Average reached a peak of 23,405 at 10.20am ...
It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.
Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.
Dianne Reeves US News HienaLouca
https://i.dailymail.co.uk/1s/2018/12/21/17/7712386-0-image-a-61_1545414216267.jpg
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