Rates Hold as Stocks Correct

Here’s an article explaining the start of the stock market decline. Monday, stocks fell again worldwide with Asia losing 1.4%, Europe losing 1.5%, and the U.S. dropping 3.9% on very high volume. The VXO shot up 114% to end the day at 35.94. Clearly panic gripped “investors” as they saw the Dow end the day down nearly 1200 points to close well below the 25,000 mark and the NASDAQ drop below 7000. The 10-Year U.S. Treasury Bond yield fell 2%, to close at 2.79 as the “flight to safety” tactic ramped up. This latest decline leaves major indices off about 8% from their highs. They still have a very long way to go. Interestingly, this was also Jerome Powell’s first day as chairman of the Federal Reserve.

Tuesday, stocks in Asia followed Wall Street’s lead and fell 3.6%. In Europe they lost 2.5%. After a wild ride down and back up, stocks closed the day in the U.S. up 1.4% on massive volume. The focus clearly was on Apple. It appeared that the banks and/or their partners in crime were using that stock to move the primary market indices. The VXO ended the day down 31% to close at 24.93. Precious metals declined 1% and their miners lost three times that amount.

Wednesday, stocks fell slightly in Asia, shot up 2% in Europe, and fell 0.5% in the U.S. very high volume. The VXO fell 16% to close at 21.00. The S&P 500 index closed below the 2700 benchmark. The 10-Year U.S. Treasury Bond yield rose 3%, to close at 2.84. Precious metals fell 1% and their miners dropped twice that amount.

Thursday, stocks rose in Asia 0.5% but fell 1.7% in Europe and 3.2% in the U.S. on massive volume. The VXO shot back up 54% to close at 32.36. Major indices closed below more benchmarks: Dow below 24,000, S&P below 2600, and NASDAQ below 7000. IBM tumbled below 150 at the close.

Friday, stocks fell in Asia 1.7% and in Europe 1.4% but in the U.S. they gained 1.1% on enormous volume. The VXO fell 19% to close at 26.14. Major indices gained back a bit of ground with the Dow closing above 24,000 and the S&P rising above 2600. Congress passed a budget bill that calls for a big spending increase and stops a government shutdown.

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