Major sell-offs in markets around the world as investors race for liquidity. The Dow alone fell more than 4 percent. This was the US market’s worst day in over a year, capping an awful 9-day run. Well, “capping” it until tomorrow when the new jobs number comes out.
Global equities fell by the most in two years and crude oil has given up six months of gains as investors shun risk and pile into perceived safe havens amid growing concerns about global growth.
The day’s move was kicked off by a steep fall in the yen after Tokyo intervened to weaken the currency in the latest move by a central bank to combat the impact of market turmoil. It was accelerated by news that the European Central Bank would return to the market to buy bonds issued by troubled debtor nations.
More: As commenter Walt C says, “Party in Chicago while Wall Street crashes. Brings Nero to mind.”
Update: The markets are on their worst run since 1978. And you know who was president in 1978…
(MarketWatch) — The stock market is poised today to do something it has not done in over 33 years: Decline for nine straight sessions.
The last time the Dow Jones Industrial Average DJIA -4.31% did that, in fact, was Feb. 22, 1978, when Jimmy Carter was president and the country was struggling to come to grips with a period of anemic economic growth and high inflation.
Isn’t it comforting to know that we’ve made such progress over the last three decades?
Actually, about the only thing that is comforting in the historical data on Dow losing streaks is that many of them have occurred near major bear-market bottoms.
And now we’re at the point where getting Carter II out of Obama seems more and more like a best-case scenario.