Page 25 - ARUBA TODAY

BUSINESS Wednesday 7 February 2018
A25

Dow turns 567 point loss into 567 point gain as stocks rally

12 months. The Dow is up 24 plunge wasn’t caused by
percent over that time, the inflation fears alone. The
S&P 500 18 percent. markets have been unusu-
Even after Tuesday's gain, ally calm since late 2016,
the S&P 500 is still down 6.2 and he said investors were
percent from the recent re- betting that would con-
cord high it set on January tinue. “People were po-
26. That's less than the 10 sitioned for more central
percent drop that is known bank easing or continued
on Wall Street as a "correc- central bank easing, low
tion." rates, and importantly, low
Corrections are seen as volatility,” he said. “Correc-
entirely normal during bull tions are caused by people
markets, and even helpful having to reposition for new
in curbing excessive gains environments.” Investors re-
and allowing new inves- main fearful that signs of ris-
tors to buy into the market ing inflation and higher in-
at lower prices. It has been terest rates could bring an
an uncommonly long time end to the bull market that
since the last market cor- has sent stocks to record
rection, which ended al- high after record high in re-
most two years ago. cent years. Travel bookings
Brent Schutte, chief invest- site TripAdvisor was one of
Trader Kevin Lodewick, center, and specialist Paul Cosentino, right, work on the floor of the New
York Stock Exchange, Tuesday, Feb. 6, 2018. ment strategist at North- only two S&P 500 compa-
(AP Photo/Richard Drew) western Mutual Wealth nies that finished higher on
Management, said the Monday. q
By MARLEY JAY gain, coincidentally, of 567. rise, those stocks become
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when they had their big- bought companies that The Dow finished 567.02 _____________________________ maintenance fee: $350 per
gest plunge in 6 ½ years. do well when economic points higher, or 2.3 per- month
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market. panies, retailers like Ama- index, a broader market seller willing to finance
Major indexes in Asia and zon and Home Depot, and barometer that many index _________________________________209085
Europe took steep losses industrial companies and funds track, climbed 46.20
and U.S. markets started banks. points, or 1.7 percent, to
sharply lower, only to re- Bond yields turned higher 2,965.14. The Nasdaq com-
peatedly change direc- after a sharp drop Monday. posite rose 148.36 points, or
tion. After its 1,175-point As a result, the biggest loss- 2.1 percent, to 7,115.88.
nosedive Monday, the es went to high-dividend The steep drops Friday and
Dow Jones industrial aver- companies such as util- Monday wiped out the
age lost 567 points right ity and real estate compa- gains the Dow and S&P 500
after trading began. After nies, which investors often made since the beginning
numerous turns higher and buy as an alternative to of the year, but both re-
lower, it wound up with a bonds. When bond yields main higher over the past