The stock market is down, but what’s going on?
The stock exchange and the markets that rely on it are down as well.
The Dow Jones Industrial Average (DJIA) fell 0.1% on Tuesday to its lowest level since January, as the stock markets have plunged since Trump won the election.
The Nasdaq fell 1.7% to 2,834.94, the S&P 500 fell 1% to 1,788.13, and the Russell 2000 dropped 0.7%, to 5,634.13.
The Standard & Poor’s 500 index, meanwhile, slipped 0.2% to 542.42.
The dollar fell to 96.47 cents from 95.96 cents.
The S&P 500 and Nasdaq both traded below the $1,300 mark for the first time since January.
The market was on the brink of a second straight weekly decline.
“It was a pretty big, if not record, day,” said Doug Fister, chief market strategist at Cumberland Advisors in New York.
“What’s going to happen with the stock and the bond markets, and so many other indicators, I think is very concerning.
They’ll be a lot less volatile than they were yesterday.”
Investors will have to wait a bit longer to see the impact of this week’s sell-off.
The Federal Reserve will hold off on its planned rate hikes until late February.
The central bank will not hold a rate hike until at least mid-March, a move that analysts say could leave the market in the red for months.
And there is a chance the Fed may be forced to wait until late June or July to lift rates.
That would leave the markets in limbo until then, but the Fed’s inaction could lead to further declines, experts said.
“The Fed has signaled that it is likely to hike its target for the federal funds rate at some point, and it has signaled its intention to do so as early as early July,” said Jeffrey Barchard, chief economist at Capital Economics.
“I think the market has had a pretty clear indication that they’re not going to do a rate increase until mid-April, maybe early May, so I think the markets are likely to be pretty cautious.”
The S & ;P 500 index was up 0.6% Tuesday, to 3,766.16.
The Russell 2000 was down 0.3%, to 6,564.70.
“People should know the markets have a lot of downside potential, particularly the markets for bonds,” said Barcharick.
“There’s a lot at stake here for the economy.”
The Dow and the S &s dropped 1.4% each, to 4,853.63 and 4,664.63.
The NASDAQ dropped 2.7%.
“The Dow and S&s are still up, but not as much as people think they are,” said Robert Shiller, chief investment officer at Renaissance Capital in New Jersey.
“We are still seeing a lot more volatility in the markets, but it’s not going anywhere, so we think that’s the best news.”
On Tuesday, the Nasdaq, the Dow and Russell futures each rose 0.9%.
The S and P 500 futures traded lower, trading at 0.8%, 0.4%, 0%, 0%.
“We think the U.S. stock market has an uphill climb and we expect a lot to come out of it, but that’s just a matter of time,” said Shiller.
“If you don’t believe the market is overbought, then it is overvalued.
It’s a great opportunity, but I think we’re all very much in the dark.”