Several United States stock market indexes dramatically went down on Monday, Oct 13, the third day the stock market is experiencing an all-time-low.
The decline was reportedly caused by instability brought by the Federal Reserve keeping money at bay as well as a rapidly fluctuating global economy.
The S&P 500 index closed at 1,875, dived at 1.7 percent for the day, placing below the 200 day average, lowest since 2012.The market went down 1.8 percent from a daily high of 1,912. S&P 500 has experienced decline of 4.8 percent from a closing high of 1,969, marking its worst 3-day decline since 3 years ago.
Meanwhile, The Dow Jones also declined at 1.35 percent, closd in at 16,231 from a high of 16, 590. The dive was one of the lowest declines that started on Oct. 9 causing a 3-day losing streak similar to S&P 500.
Nasdaq market value also went down after a volatile trading day, dropping 1.5 percent for the day, diving from a high of 4,302 to 4,213.
The heightened trading volatility was reportedly caused by an emerging divergence between other big economies like Europe and Japan with the United States economy. It will take a longer period of time for several markets to come to a conclusion that the rated from the Federal Reserves will benefit them in terms of earnings.
"The markets are in a bit of a twilight zone," Brian Tiskorowski, director of markets and product strategy at Wells Fargo state.
Meanwhile, Russell 2000 was not affected that much as it had a slight drop of 0.4 percent throughout the trading day. Last September, the index experienced a dramatic decline faster than the rest of the indices on the stock market, tumbling to 10.7 percent Since Sept. 2.
Amidst all the stocks falling, Tiskorowski offered a view of optimism.
"I don't think that this is the beginning of a bear market. For under allocated to U.S. stocks, the recent dip could mark a good time to buy," Tiskorowski continued.
