US Stocks Dive Again, Worst December Since Great Depression Projected

US Stocks Dive Again, Worst December Since Great Depression Projected

US Stocks Dive Again, Worst December Since Great Depression Projected

USA market indexes rebounded slightly on Tuesday after concerns of bear market losses and correction territory returns on Monday. That would be its fourth increase this year, and its ninth in three years. Afterhours trading in the largest exchange-traded fund that tracks the S&P 500 fell 0.5 percent.

The Russell 2000 is down 158.34 points, or 10.3 percent. It is expected to raise the rate - used as a benchmark for many consumer and business loans - by a modest quarter point to a range of 2.25 percent to 2.5 percent.

The plunge in oil prices has crushed energy company stocks in recent weeks. More interest though will be on the statement accompanying the decision and the press conference of Fed Chair Jerome Powell. "It wouldn't be hard to have a rally, given how far we have gone down since late September".

ITALY: There was also some relief, particularly in Europe, that Italy had reached an agreement with the European Commission on its budget plans, which the EU's executive arm had warned could break the euro's rules and lead to legal action.

The Dow Jones Industrial Average rose 209 points, or 0.9 percent, to 23,812. With the steep drop, the index ended the session at its lowest closing level in well over two years.

Trump administration economic adviser Peter Navarro said on CNBC Monday morning that the Fed is the source of volatility and the stock slide. President Donald Trump continued with his criticism of policy makers, warning them to avoid "yet another mistake" just hours before their two-day meeting begins. "The hiatus on trade helps as well, but I'm a bit more skeptical about how long lasting that is", Ronald Temple, head of US equity at Lazard Asset Management, told Bloomberg TV.The Fed is likely to hike rates on Wednesday, even as President Donald Trump intensifies his attacks on the central bank.

Traders at New York Stock Exchange
Traders work on the floor of the New York Stock Exchange in N.Y. on Dec. 18 2018

"I'm pretty sure this is a bear market", Gundlach said on CNBC's "Halftime Report".

Markets have been rattled throughout the year amid fears of rapid interest rate hikes.

Software, retail, telecom and computer hardware stocks also saw considerable weakness amid another broad based sell-off on Wall Street. Treasury Secretary Steven Mnuchin said the USA and China are planning to hold meetings next month to seek a trade truce. "Given recent economic and market developments, the Fed should cease - for now - its double-barreled blitz of higher interest rates and tighter liquidity". The S&P 500 is now in the red for 2018 by 4%.

Goldman Sachs Group Inc shares rose 2.1 percent to snap a nine-day losing streak related to the 1MDB scandal.

"Year-end trading can be slow, as window-dressing can easily take over trades", said Howard Silverblatt of S&P Dow Jones Indices.


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