In with a Thud

Monday, stocks fell in Asia 2.2%, in Europe 2.5%, and in the U.S. 1.4% on moderate volume. This downdraft pulled the NASDAQ below the big 5000 benchmark again. The VXO shot up 15% to close at 20.93. Precious metals rose about 1.5% and their miners gained about twice that amount. Tuesday, in Asia stocks dropped 0.8%. but in Europe they rose 0.7%. In the U.S., stocks ended nearly unchanged on light volume.

Wednesday, stocks fell smartly around the world: 1.2% in Asia, 1.3% in Europe, and 1.6% in the U.S. on moderate volume. This dragged the Dow Jones Industrial Average, NASDAQ, and NYSE below their 17,000, 5000, and 10,000 benchmarks respectively. The VXO rose 9% to close at 21.96. The 10-Year U.S. Treasury Bond yield fell 3% to close at 2.17%. Some pointed to North Korea’s nuclear bomb test or further devaluation of the yuan as possible contributors to market jitters. The FOMC also released its minutes from the most recent meeting with little news. Of course, stocks couldn’t be falling because they’re grossly overpriced. It must be something else.

Thursday, stocks plunged 2.3% in Asia. The stock market in China could stay open less than 30 minutes before being closed to prevent panic selling. The yuan again fell sharply. In Europe stock also shed 2.3% and in the U.S. the drop was 2.2% on moderate volume. Fear gripped the trading floor as the VXO shot up 22% to close at 26.74. Oil closed below $34 per barrel. The stars of the day were precious metals, up 2%, and their miners up about three times that amount.

Friday, stocks declined 0.4% in Asia, 1.5% in Europe, and 1.3% in the U.S. on moderate volume. Oil declined further to close below $33 per barrel. For the week, stocks lost 6% and fear ramped up 50%.

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