The Dow has fallen significantly after its biggest point gain in history, shedding as much as 500 points a day after gaining over 1,000 points. The Nasdaq fell 2.2% and the S&P was down 2.1%. The historic gain came at the right time with the market having its worst December since the Great Depression. While the point gain was the best ever for the Dow, the S&P 500 and Nasdaq had their best performances in almost one decade.
Unfortunately, one day in the market is not a trend and this has been substantiated throughout the month of December, with sentiments further increasing the volatility of the market. The past few weeks seem to have been one of the bad omens with jittery investors reacting to all kinds of news – good and bad.
Seven of the past eight sessions have seen the Dow losing or gaining over 350 points, with Thursday’s loss making it eight of nine. The huge gains and losses have suggested that investors remain on edge about the economy, monetary policy, trade, and Washington dysfunction.
Winners become losers
The volatility of the market was further reiterated as the big winners of Wednesday become the big losers of Thursday. Tech led the rally on Wednesday but nosedived significantly on Thursday morning. Amazon (AMZN), Facebook (FB), Alphabet (GOOGL), Netflix (NFLX) and Apple (AAPL) all fell by approximately 2%. GE (GE) also fell about 3.6% after having its fifth-best day of the year Wednesday.
Oil was down 1.5% Thursday morning after rising 9% a day ago.
However, the reverse was the case for Newmont Mining Corp (NEM), which was the only stock in the S&P 500 that fell Wednesday but was up nearly 1% before the bell on Thursday. It was also the biggest gainer on Monday when the Dow fell as much as 650 points. This can be attributed to the rise in the prices of gold due to the fears by investors.
Global stocks affected by the volatility
European markets fell sharply on their first trading day since Monday with the FTSE down 1.6% and Germany's DAX falling 2.7%.
The Hang Seng in Hong Kong and the Shanghai Composite also lost over 0.6% after weak Chinese industrial data highlighted the challenges faced by the world's second-largest economy.
However, Japan's Nikkei rose nearly 4% on Thursday, pulling the index out of the bear market it had entered just two days ago. Stocks also climbed more than 1% in Australia and Singapore.
More economic news and other related information about Singapore and the economic situation in Asia, as well as the services offered by Phillip Private Equity, can be found on their website.
About Phillip Private Equity
Phillip Private Equity is one of the leading private equity firms in Singapore. Formerly known as ECICS Management Pte Ltd, the company offers a wide range of financial services with a focus on providing capital in the form of equity and debt to innovative enterprises across select stages, sectors, and geographies.
The company aims to create businesses with lasting and significant value by closely working with investee companies to accelerate their growth and help them achieve their potential. Phillip Private Equity has a team of fund managers with more than 20 years of experience managing proprietary, in-house and 3rd party funds. The investment objective is to deliver investment returns while safeguarding stakeholders’ interest by protecting against downside risks.
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