Top 3 Reasons Markets Got Crushed Before the Day of Rage
Markets closed down big on Wall Street: DJI -1.85% SP500 -1.86% Nasdaq -1.84% Gold -1.2%.
It was an ugly day in the markets right from the start. There was a minor recovery into the lunch hour, but traders sold everything once they came back to their terminals.
Today’s markets were down big because:
1) Wall Street is scared shitless about tomorrow’s Day of Rage in Saudi Arabia. Most investors are reducing exposure or hedging before what could become a new wave of instability in the Middle East. There have already been reports that protesting and rioting is starting. This will have the Oil (NYSE:USO) traders losing their voices tomorrow. Now check out How Quickly Rising Oil Prices Impact the U.S. Economy.
2) Industrials and Capital Goods (NYSE:XLI) got slammed on economic fears. If the Middle Eastern lynchpin falls, energy prices could continue to have a negative impact on the global economy. Toss in a trade deficit in China (NYSE:FXI), a record Federal Budget deficit in the US, and Moody’s (NYSE:MCO) downgrade of Spain (NYSE:EWP), and it was a recipe for selling the highly sensitive basic components of things. Don’t Miss: Are These Two Charts Telling Us To Buy Gold, Silver and Commodities?
3) A hand full of stocks bucked the trend. While there was mostly blood on Wall Street, Starbucks (NASDAQ:SBUX) and Green Mountain Coffee Roasters (NASDAQ:GMCR) popped on a single-serving coffee partnership, Bank of America (NYSE:BAC) distributed an analyst note saying the Netflix (NASDAQ:NFLX) selling is overdone, and Wall St. Cheat Sheet Premium Pick Open Table (NASDAQ:OPEN) spiked from start to finish. Here’s a list of 40 Stocks Up in Today’s Down Market.
Now that you’re in the know, time to keep your eye on the BBC to see whether Saudi Arabia explodes.