Stock Market Crash? or Simple Market Correction?

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In stock news this week the market closed at a major loss with tech stocks making huge losses and many more stocks dropping far lower than expected.

Both FedEx stocks and American Airlines saw losses this week with FDX losing more than -8% and AAL losing -16.4% of share value.

In fact it turns out that in stocks this week the transportation sector was one of the most under performing groups with an average of almost 4% losses in the Dow Jones.

All of the FAANG stocks lost value with NFLX and AAPL both making considerable losses. Apple stock is down this past week at a -3.7% loss.

Facebook saw similar losses and along with a flurry of bad news and press about the company FB began doing large buy backs of stock in an attempt to bolster value.

NVIDIA likewise made substantial losses topping the list for the tech stocks with a total of -6.8% loss throughout the week.

While the market attempted to come back Thursday it failed to gain enough traction to make any meaningful recovery. Leading to more sell-offs and an increased lack of trust in this market bouncing back.

This week in the stock market the Dow 30 is down -4.5%, the S&P 500 down -4.6%, Russell 2000 down -5.6% and the Nasdaq down -4.9%.

On a positive note Trump’s visit and talks with Xi seemed to have payed off, for now anyway.

There has been an agreement made to suspend the current tariffs for a 3 month period while they continue negotiations. This has helped many companies that depend on China for manufacturing, like Tesla cars which are not being produced in the thousands.

While safe for now there is the possibility of an increase of tariff to as much as 25%, far beyond the previous 10%, if trade deals can’t be reached between the two superpowers.

Out of the stocks that suffered this week the biggest losses were in technology where the overall losses were at -5.1%, healthcare at -4.6%, financial services at -7.1%, materials -5.2% and industrial stocks down -6.3%.

Utilities are up this week and many top investors are recommending them as a good hedge on this increasingly turbulent market. Most are saying to stay in the market yet investing in utilities which saw a +1.3% for the week and possibly real estate which is up 0.3%.

Overall this week has been a stormy time in stocks and left many looking to further diversify their portfolios to hedge against these uncertain times.

3 COMMENTS

  1. the stock market today is not the same as it once was. now if the dow jones or S&P 500 loses a trillion dollars over a week period that does not signafy a crash at all. that is just a correction in the market

  2. Maybe it may be a taste of what there is to come. This market has shown incredible resilience it is true. It does seem to bounce back from most anything and continue to keep making up losses and reach new heights.

    But anyone who knows the markets knows that what goes up MUST come down. So just when… not if.

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