Today, the stock markets in the United States of America plunged. It wiped out a portion of the bump that was observed yesterday as the consumer confidence in the US dropped to its lowest point since July.
After the first-ever 1,000-point daily surge that was recorded yesterday, the Dow Jones dropped by 441 points to 22,439.
The 1.9 percent decline was partly led by technology stocks as Amazon, Apple, and Alphabet, the parent firm of Google, dropped by more than two percent.
Meanwhile, the S&P 500 dropped by approximately two percent to 2,419 points.
The decline troubled the analysts who said that the stocks should have seized on the momentum that was experienced yesterday.
THe chief market analyst of IG, Chris Beauchamp, stated: “The inability of markets to follow-through on what was a classic ‘bear market rally’ sends a worrying signal – if this was the old bull market of a few months ago the momentum trade would have taken off by now, but instead Wall Street continues to edge lower, while in Europe the reversal has been swift and unrelenting.”
Oil markets also dropped, with Brent crude, the international standard, falling by 3.3 percent to $52.73 per barrel.
The markets have feared a increase in oil production, with the price of Brent falling by approximately 40 percent since year-highs in early October.
Beauchamp stated: “It makes sense to expect both oil and stocks to move in lockstep, as fear reigns supreme among investors. All the signs point to a bottoming out in sentiment, positioning and fund flows, but until the price gives us a clear signal, momentum remains with the bears.”
The downturn that was experienced in the United States was mirrored in much of Europe, as the FTSE 100 closed down by 1.52 percent to 6,585.
Stoxx 600, the Europe-wide index, dropped by 1.75 percent to its lowest point since November 2016 following a 0.5 percent increase in early trading.