There are just ten other days when the DJIA, the NASDAQ and the S&P500 dropped this far – and seven of those occurred since 2009. Our diagram reveals these to be quite recent – yet shows this bull market posting major gains without significant interruption.
Further, a similar adverse day happened just four months ago, on April 17 – yet prices weathered this interruption, climbing further, and achieved new record highs.
One other moderating circumstance, as today’s diagram shows, is that eight of these drops came concurrent with bull markets; only two are bear related.
We note, though, the present concern about if, and if when, the Fed will reverse its buying policy; and how rising interest rates will impact the stock market. As noted yesterday, the ten year Treasury has closed with higher interest rates for several days now … and today moved up again, for the eight session in a row.
DJIA -1.47 percent
NASDAQ -1.72 percent
S&P500 -1.43 percent
