Look out below, global stock markets fall sharply once again
The stock market is falling once again, is that even news anymore? US stock markets opened sharply lower after the Shanghai stock market fell 3.5 percent earlier on Friday, followed by European markets falling around 3 percent.
Update – 2pm ET: The Dow is currently down over 400 points, or 2.7 percent, while the NASDAQ is down over 3 percent, over 150 points.
Closing bell: the Dow ended the day down –391 points, or 2.4 percent, the NASDAQ was down 126 points, or 2.7 percent. For the week… well, don’t ask, it was bad.
Oil price again fell below $30 a barrel, as oil traders realized that the easing of sanctions on Iran was right around the corner, bringing even more oil into a market saturated with supply, but shrinking demand.
The problem with falling stock markets on a Friday as it sometimes means investors worry all weekend and rush in sell orders on Monday.
“If prices were to end the trading day below $30 per barrel, it could set the scene for further declines next week,” one analyst told The New York Times.
Falling oil prices, weakening economies, falling demand in China, it appears that April’s expected rate hike by the Fed may be reconsidered if this continues. While the US economy appears to still be fairly strong, a bad initial jobless claims report has some thinking the Fed may delay another bump in rates.
Already this month BP announced 4,000 job cuts, GE announced 6,500 job cuts, and Monsanto 1,000.