On Thursday, fears seemed to prevail once again, with the Dow Jones Industrial Average tumbling more than 300 points, reversing Wednesday’s big rally.
It was the third move in a row of more than 200 points by the blue-chip index—a roller-coaster ride that ranks as the most volatile stretch for the Dow since August 2011
Traders blamed slowing global growth and tumbling energy prices but said there was no particular news on Thursday to blame for the Dow’s drop.
In the background, a long period of calm in the stock market appears to have drawn to a close thanks in part to building concerns about the pace of global economic growth—especially in Europe.
The selling Thursday was heaviest in the shares of energy companies, many of which stand to be hit as crude-oil prices drop amid fears that global growth is slowing.
“When you get these swings on no news, everybody’s searching for an answer,” said Michael Antonelli, a stock trader on the Milwaukee trading desk of Robert W. Baird & Co.
Despite the outsize decline in stocks, the market was orderly, said Mr. Antonelli. “No panic, zero. No sadness. Just confusion and frustration and a lot of question marks.”
Reflecting that lack of panic, there were few signs of haven buying in the bond or currency markets.
Full article: U.S. Stocks Tumble as Volatility Returns (Wall Street Journal)