My View: The markets are likely to have further selling this week. There could be margin calls and force selling as well. If a trade war erupts, the inflation is likely to rise faster resulting in quicker rate hike, thereby preventing the equity markets to rise. Please trade and invest cautiously as the events unfold.
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Dow drops more than 400 points into correction, posts worst week since Jan. 2016
- The major averages posted their biggest weekly loss since January 2016.
- The Dow and S&P 500 dropped 5.7 percent and 5.9 percent this week, respectively, while the Nasdaq pulled back 6.5 percent.
- "The market has been priced for perfection ... and that leaves the market vulnerable to surprises. In this case, it's trade," notes one strategist.
Stocks fell sharply on Friday, adding to their steep weekly losses, as investors assessed the possibility of a trade war brewing between the U.S. and China.
The Dow Jones industrial average dropped 424.69 points to close at 23,533.20 — its lowest level since November — with DowDuPont as the worst-performing stock. The 30-stock index also closed in correction, down 11.6 percent from its 52-week high.
The S&P 500 declined 2.1 percent to 2,588.26, with financials pulling back 3 percent. It also closed just outside correction territory. The Nasdaq composite fell 2.4 percent to 6,992.67. The indexes, along with the Dow, had traded higher earlier in the session.
