December 22, 2018

Dow Jones industrial average futures were fallen by 183 points at about 2:30 a.m. ET, signaling the October stock market fall that intensified on Wednesday. Dow futures also declared that the Dow will open this Thursday down by 274.74 points. S&P 500 futures were lower by 0.63 percent overnight, for their part at Thursday’s open.

After falling 3.2 percent during a day seeing stocks sells off throughout the afternoon, The SPDR S&P ware fallen at about 0.57 percent in after hours trading Wednesday. Intel and Microsoft fell more than 3.5 percent each so that the Dow Jones Industrial Average closed 831.83 points lower at 25,598.74. Due to declining of Amazon and chip stocks, the Nasdaq Composite plummeted 4 percent to 7,422.05. Since this February it was the worst for Dow futures and S&P.

“October weakness intensified today as volume surged and selling was widespread”, said Bruce Bittles, chief investment strategist at Baird, in a note after Wednesday’s close. “We may need to see evidence of exhaustive selling, increased investor pessimism and a healthier breadth back-drop to suggest that near-term risks are ebbing.”

“While seasonal tendencies become increasingly favorable moving toward year-end, we have yet to see evidence that overall selling has reached downside exhaustion,” Bittles said. “For now, caution remains warranted.”

At the same time, the most widely watched measure of investor fear spiked on Wednesday. The CBOE Volatility Index, popularly known as the VIX, leaped about 44 percent to 22.96, its highest level since the beginning of April. The VIX measures implied volatility on S&P 500 index options.

The INVESCO QQQ Trust, which tracks the Nasdaq-100, fell 0.7 percent in after hours trading Wednesday, signaling tech stocks would be under pressure once again in Thursday’s session.

With the tech sector underperforming, the S&P fell 3.3 percent to 2,785.68. A five day losing streak was also posted by the board index. It fell below its 50 days and 100 days moving average and widely followed technical levels.

Since early February, the Dow and S&P posted their biggest one day drops. Here, since June 24, 2016, Nasdaq noticed its largest single day sell off.

Stocks have fallen this month. The S&P 500 and the Dow are down more than 4.4 percent and 3.3 percent respectively this October. The Nasdaq has lost more than 7.5 percent.

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