Facebook Leads Stocks Lower as Fear Returns

Monday, stocks fell around the world — in Asia 1%, in Europe 1.2%, and in the U.S. 1% on strong volume. The VXO moved up 21% to close at 17.04. FANGs retreated in response to talk of a tax that would hit them. This is particularly devastating since the FAANGs now make up more than 25% of the NASDAQ. IBM fell below the $160 level as part of the wave of selling.

Tuesday, stocks in Europe gained 0.5%, but in Asia and the U.S. they closed little changed on moderate volume. As is often the case the day before the FOMC anouncement, U.S. markets marked time. Precious metals and their miners declined 1%.

Wednesday, stocks in Asia fell 0.3%, closed little changed in Europe, and gained slightly in the U.S. on moderate volume. Precious metals and their miners gained 2% as the FOMC raised interest rates 0.25% as expected and issued a slightly hawkish statement.

Thursday, stocks in Asia closed little changed but stocks declined in Europe 1.6% and the U.S. 2.4% on strong volume. The VXO shot up 32% to close at 22.11 as fear returned and the Dow Jones Industrial Average closed below 24,000.

Friday, stocks fell worldwide — 1.1% in Asia, 1% in Europe, and 1.6% in the U.S. on high volume. The VXO rose 12% to close at 24.70. The NASDAQ closed below 7000 and the S&P 500 Index closed below 2600. IBM fell below $150 while precious metals gained 1% and their miners three times that amount.

Leave a Reply

Your email address will not be published. Required fields are marked *