Tuesday, 6 February 2018

Stocks plunge in “panicky” selloff but “doesn’t mean the bull market is over”

Markets plunged on Monday.

The S&P 500 tumbled 4.1 percent, turning negative for the year. The STOXX Europe 600 fell 1.6 percent and the Nikkei 225 fell 2.5 percent.

“Unlike Friday, when selling was orderly and not on a huge volume, today’s selloff was definitely panicky,” said Joe Saluzzi, partner, co-head of Equity Trading at Themis Trading.

However, Randy Frederick, vice president of trading and derivatives for Charles Schwab, said that a pullback was both “expected and healthy” and “doesn’t mean the bull market is over”.

Indeed, Ed Yardeni, president of Yardeni Research, said that President Donald Trump's tax cuts will pull stocks out of their current tailspin.

“One of these days, the panic attack will be the beginning of a bear market. But I don't think this is it,” he said.

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