What was shaping up to be a typical trading week in the stock market radically changed on Thursday. Monday through Wednesday trading volume was moderate and the indices remained in close proximity to plus or minus 100 points on a daily basis. Thursday the market, almost from the opening bell, tanked.
By the time the smoke cleared the DOW had dropped 266 points. What was even more eye catching was that the tech heavy NASDAQ plummeted just under 130 points. It is extremely rare for this index to have triple digit declines in a single trading session whereas with the DOW it is far more common place.
Don't miss a thing. Get breaking Santa Clarita news alerts  delivered right to your inbox.
Investors on Wall Street were asked their opinion for the major sell off in the tech sector and there seemed to be little common reasoning amongst investors. Some felt that because of the recent run up in the tech sector, some investors were just looking to cash out their profits.
Others felt that some tech stocks had risen too quickly and that a fall was coming sooner than later so they cashed out in order to avoid getting caught short. Unfortunately once momentum of selling starts, regardless of the motivation, it takes on a life of its own which also seems to be playing a role in Thursday’s losses.
As far as real news which could have had the potential to impact the markets, that came and went with little fanfare. On Wednesday the Federal Open Market Committee minutes were released. As expected, the committee intends on keeping monetary policy loose for the coming years. What this means is that interest rates are expected to be kept artificially low even though the Fed is continuing to taper their stimulus program a little more each month as scheduled.
The first time jobless claims report released on Thursday showed claims to be at their lowest point in 10 years. Claims were 300,000 which was approximately 20,000 lower than most experts anticipated. The spring holiday time of Easter and Passover can have an impact in employment numbers. Additionally, in the month of April, Spring Break is happening for many school districts around the country and that has many people going on vacation during the month.
Do you have a news tip? Call us at (661) 298-1220, or drop us a line at email@example.com .
Next week the potential market reports are:
•Monday April 14th - Retail Sales
•Tuesday April 15th - Consumer Price Index
•Wednesday April 16th - MBA Applications, Housing Starts and Industrial Production
•Thursday April 17th - First Time Jobless Claims
•Friday April 18th - Good Friday; Markets Closed
As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-505-4300.