Wall Street Finishes the Day in Correction Territory as Stocks Decline

Today, Stock markets in the United States confirmed that they were in correction territory following a week of wild swings.

The benchmark S&P 500 and the Dow Jones Industrial Average were both over 10 percent lower as compared to their record highs in January, closing down at 3.8 percent and 4.2 percent, respectively. The tech-heavy Nasdaq closed the day at 3.9 percent lower.

The so-called fear gauge of Wall Street called the Vix, increased by over 20 percent to a level of 33. Yesterday, the said index had traded lower following a spike to around 50 last Tuesday as volatile trading in the United States was able to gather some pace.

The senior managing partner for Meridian Equity Partners in New York, Jonathan Corpina, warned that Wall Street was still not out of the woods.

Corpina stated: “The dust hasn’t settled yet, and I think both buyers and sellers are trying to figure out what this market really wants to do.

“I would think that this continues to happen for the next few trading sessions for everything to kind of get flushed out.”

On the other hand, the blue-chip index of the United Kingdom closed at 7,170.69 which is 1.49 percent lower.

“The current sell-off in global equities has been a long time coming. Prior to the price action over the last ten days, the major US indices had rallied almost without interruption since the Brexit vote in June 2016,” stated the senior market strategist at GKF, David Morrison.

“While well overdue, the sell-off in US stock indices has still left its mark.

“When markets experience this kind of turbulence it often takes time to see what the longer-term repercussions may be. The question is whether there’s been some serious damage done, either in terms of breaches of key technical trading levels or a change in overall market sentiment,” stated Morrison.