US stock markets slide all day in brutal day for stocks, end to brutal week
The US stock markets opened sharply lower once again on Friday, with the Dow Jones Industrial Average now trading below 17K at 16,880 (10 ET), a drop of just under 1 percent. For the week, the index is down 3.6 percent. (At 11:30 ET the Dow is at 16,716.10, down nearly 275 points.)
Markets worldwide were lower as fears among investors of the weakening Chinese economy. Reuters reported today that one gage of Chinese manufacturing output, the Caixin/Markit China Manufacturing Purchasing Managers’ Index, had fallen to its lowest level since March 2009. Chinese stock markets reacted negatively to the news, with the Shanghai index falling 4.3 percent and the Shenzhen index closing down 5.4 percent.
Both the Dow and NASDAQ fell sharply at open, though they recovered somewhat. Yesterday, stocks sank in the final hour of trading, the time investors decide to bail out of stocks. Financial reporters will be watching closely this afternoon for signs that the market could go into an uncontrolled sell-off near the final bell.
(In the 1987 crash, much of the fall in share values occurred in the final hours of trading, That day stocks fell over 500 points, which at the time equated to a 22 percent decline.)
Update: At the bell the floor was pulled from underneath traders and the Dow Jones Industrials fall became a route as the index closes down more than 500 points, more than a 3 percent decline.
Tech stocks have been particularly hit in the recent fall in the market. Apple stock, for instance, is down 10 percent in the past month. Hewlett-Packard, which posted a dismal endings report earlier this week, has seen its stock price slip over 12 percent.
Of the major tech stocks, most are down significantly this year, though Apple stock is actually up 2 percent for the year (much to the chagrin of BusinessInsider editor Henry Blodget, who has been bad mouthing Apple shares since the site launched – I guess the idea is that one day be might be proved right).