The Dow Jones industrial common fell 665 factors on Friday afternoon — however that did not set off any buying and selling halts. Bizarre?
No. The buying and selling halts instituted by the U.S. inventory exchanges do not kick in till the broader market gauge, the S&P 500, falls no less than 7 %, what’s known as stage 1.
For the day, the S&P index closed down “simply” 2.1 %, at 2,762.
To place the day’s transfer in a broader context, the purpose drop within the Dow (which is a basket of 30 massive U.S. firm shares versus the 500 or so shares within the S&P) was simply 2.5 %. The final time the Dow closed down 500 or extra factors was after Britain voted to go away the European Union, June 24, 2016, when it fell 610 factors, then a three.four % transfer.
The Dow’s largest drop in factors in a single day was 777.68 on Sept. 29, 2008, within the midst of the monetary disaster. That may be only a three % drop nowadays. It was a 6.89 % fall again then.
Nonetheless, the Dow has given again one-third of its good points for January. And the groundhog has known as for six extra weeks of winter.