Monday, stocks sank 2.4% in Asia and 1.5% in Europe but gained 0.7% in the U.S. on 17B shares traded. Precious metals rose about 1%. The Dow ended above its 42,000 benchmark, and the S&P 500 closed above the 5600 level. Apple ended above the 220 mark.
Tuesday, stocks gained 0.7% in Asia and 1.1% in Europe but closed unchanged in the U.S. on 15B shares traded. The 10-Year U.S. Treasury bond yield fell 2% to end at 4.16. Precious metals fell about 1%. The Dow ended below its 42,000 benchmark. IBM closed above 250.
Wednesday, stocks rose slightly in Asia, fell 0.5% in Europe, and gained 0.7% in the U.S. on 17B shares traded. The Dow ended above its 42,000 benchmark.
Thursday, stocks plummeted 1.3% in Asia, 2.7% in Europe, and 3.9% in the U.S. on 21B shares traded. The VIX shot up 40% to end at 30.02. The 10-Year U.S. Treasury bond yield fell 3%, ending at 4.06. Precious metals nosedived 2.5% but their miners held strong. The Dow, NASDAQ, S&P 500, and NYSE closed below their respective 41,000, 17,000, 5400, and 19,000 benchmarks. Apple ended below 210, and IBM closed under 250.
Friday, stocks nosedived 1.9% in Asia, 5.0% in Europe, and 6.1% in the U.S. on 27B shares traded. The VIX roared 50% higher to end at 45.31 on this highest trading volume day ever. The 10-Year U.S. Treasury bond yield fell 2% to end at 3.98 indicating dollar strength in the usual “flight to quality” panic.
Precious metals lost 4%. Their miners capitulated and gave up 9%. If this market move mirrors that of 2008, precious metals will be hit hard along with stocks as gold is liquidated to cover margin calls and the flight to quality mania raises the value of the dollar. The good news is, gold recovered quickly and powerfully back then and ahead of the stock market.
The Dow, S&P 500, and NYSE closed below their respective 39,000, 5100, and 18,000 benchmarks and moved into correction territory. The NASDAQ ended below 16,000 and entered bear market territory. Apple ended below 190, and IBM closed under 230. Strangely, all of this carnage happened on a day when the employment report came in rather rosy. Finally, the Federal Reserve balance sheet declined 17B to 6.72T.