CW8888: Few more trading days to go before October Effect ended.
Stocks plummeted on Wednesday as a sharp drop in tech shares and worries about corporate earnings added fuel to this month’s steep pullback.
The Dow Jones Industrial Average dropped 608.01 points at 24,583.42 and erased all of its gains for 2018. The S&P 500 dropped 3.1 percent to 2,656.10 and also turned negative for the year. The Nasdaq Composite fell 4.4 percent to 7,108.40— entering correction territory — as Facebook, Amazon, Netflix and Alphabet all traded lower.
“An increasingly murky macro picture is clouding the 2019 earnings outlook leaving investors to largely shrug off a solid start to the third quarter earnings season,” said Alec Young, managing director of global markets research at FTSE Russell. “While valuations have certainly come down in recent weeks, at 16 times forward earnings for the Russell 1000 index, they aren’t in the bargain basement by any means, especially if earnings growth slows more than expected next year.” …