The stock markets in the United States dropped significantly today. The Dow Jones, S&P 500, and the NASDAQ fell more than 3%, the biggest one-day drop in the indexes since 2011, according to Reuters.
The S&P 500 and NASDAQ already entered the correction territory— both dropped more than 10% from its recent high levels.
The global stock market was primarily impacted by investors concern regarding China’s slowing economic growth. The country recently devalued its currency, and recent data showed that its economy is weakening.
Commenting on the market trend, Quincy Krosby, a market strategist at Prudential Financial told CNBC, “The market’s going to be focused on China tonight to see if they come on tonight with something that would be considered a viable (way) to stimulate growth in that economy
Peter Costa, president of trading firm Empire Executions, said, “The movements we’ve seen have been so fast and so large. You’re talking about 75, 100 point moves in two minutes. It’s been extremely fast, and it’s happened very, very quickly.”
On the other hand, Adam Sarhan, CEO of Sarhan Capital commented, Fear has taken over. The market topped out last week.”
Meanwhile, White House Press Secretary Josh Earnest tried to calm investors by pointing out that U.S. economy is resilient, and the Treasury Department is closely monitoring the global markets.
Earnest also said, “The President is very mindful of how this would be a particularly bad time for a self-inflicted wound.”
- Dow Jones Industrial Average (DJIA) – 15,871.28 (-3.58%)
- S&P 500- 1,893.22 (-3.94%)
- NASDAQ- 4,526.25 (-3.82%)
- Russell 2000- 1,118.25 (-3.33%)
- EURO STOXX 50 Price EUR- 3,073.39 (-5.35%)
- FTSE 100 Index- 5,898.87 (-4.67%)
- Deutsche Borse AG German Stock Index DAX- 9,648.43 (-4.70%)
- Nikkei 225- 18,540.68 (-4.61%)
- Hong Kong Hang Seng Index- 21,251.57 (-5.17%)
- Shanghai Shenzhen CSI 300 Index- 3,275.53 (-8.75%)
Stocks in Focus
The stock price of Apple declined to as low as $92 per share but managed to recover and ended the trading session to $103.61 per share, down by 2% today. In a note to investors, BMO Capital analyst Keith Bachman said the shares of the tech giant are “inexpensive at current levels.”
Vital Therapies declined more than 79% to $3.65 per share, the biggest decliner on NASDAQ. The company announced that its Phase 3 trial in AILD (alcohol-induced liver decompensation) failed. Analysts at Bank of America lowered their rating on the stock from Buy to Underperform and reduced their price target from $40 to $5 per share.
The stock value of HMS Holdings increased 13% to $9.99 per share. The company disclosed that it received a Medicaid Third Party Liability and Recovery Services contract from the New York Office of Medicaid Inspector General.