"When stocks reach new highs month after month, when a virtual currency is the hottest thing in town, greed has overtaken fear". The toy maker Hasbro and fashion brand Michael Kors announced their financial results before the end of the stock market session.
The benchmark S&P 500 was set for a second day of declines, following sharp swings in recent sessions including its biggest drop in more than six years that pulled equities away from record highs. The S&P correction is the fifth of this bull market, according to Yardeni Research.
Meanwhile, the sudden cratering of stock prices, rising bond rates and fierce volatility have been a stark reminder that Trump, like his predecessors, isn't commander in chief of the US economy, the Associated Press explained.
The index closed trading 1,177 points lower, erasing all gains for the year and only two stocks finishing higher. All but two stocks in the broad gauge declined, Bloomberg reported. The VIX Volatility Index was lower at 27.73 for a loss of -2.25 points or -7.51%. Enthusiasm about a corporate tax cut had helped drive the stock market to record levels.
"Seemingly the only hope for the markets at the moment is that investors suddenly decide that the sell-off has been a bit overdone", said Connor Campbell, a financial analyst at Spreadex.
Bitcoin fell again on February 6 by 12 percent and was valued below $6,000 for the first time in 2018.
It's unclear if the global markets are really moving in "lockstep", as some observers have suggested, but uncertainty abounds.
"History suggested the S&P 500 was overdue for a pullback: 404 trading days had elapsed since the market last experienced a 5 percent drawdown, the longest stretch of time in almost 90 years!"
Stocks are having another bad day on Thursday as a wild week for markets continues.
"In the absence of recession, a deep bear market is unlikely", he said. First, the market was due for a correction.
European markets have followed the lead given by the United States and the FTSE 100 is now down just 1.2% having traded as much as 2.7% lower early on. Germany's DAX declined 2.6 percent.
Some investors, however, fear the market is over-stretched in the context of higher inflation and rising bond yields as central banks withdraw their easy money policies of recent years.
The Dow Jones industrial average tumbled more than 1,300 points, or 4 percent, Thursday afternoon, as volatility returned to markets after a brief respite.
European markets later trimmed their gains somewhat yesterday to stand about 2.5 percent lower compared with Monday's closing level.
Japan's benchmark Nikkei 225 index surged as soon as trading began as investors sought bargains, finishing morning trading up 3.1 percent at 22,270.56. The decrease will be.125 percent at most so it's not much, but it's at least a positive to take from this market drop. The dollar stabilized while the yen advanced.