Wall Street is hoping that the worst of a brutal correction will soon be over, but today’s not looking much better after Wednesday’s big plunge. Markets are still rattled and they appear headed for a second day of significant losses.
Stocks have been down for five straight days, but the selloff Wednesday was a whopper in terms of points. The Dow fell 832 points, or down 3.15 percent.
The S&P 500 was down 3.29 percent, and the technology-heavy NASDAQ took the biggest hit, plunging more than four percent.
Some of the biggest losers were tech companies. Apple sank 4.6 percent, Microsoft dropped 5.4 percent, and Google’s parent company lost 4.6 percent. Amazon plunged 6.2 percent.
Some analysts have blamed rising interest rates for the selloff. Those rates have been climbing after several encouraging reports on the economy. But higher interest rates can slow economic growth and erode corporate profits.
President Trump blasted the Federal Reserve for raising interest rates. The Fed has been raising rates in an effort to prevent inflation because economic growth has been booming.
Other analysts said they had expected the pullback because the soaring market was due for a correction.
One White House official told CNBC it was it “a bull market correction,” saying it’s probably healthy to have a correction and that the overall economy remains strong.
Most analysts believe the pullback is temporary and that stocks will eventually recover and hit new highs.