This holiday season is a bear for the US stock market, literally.
As we approach the week of Christmas, the Nasdaq Composite tumbled a shocking 8.4 percent, to 6332.99. This is its biggest drop since 2008 and a major contributor to the 22 percent the index has fallen since peaking in August.
Big names in the tech world led the decline. Apple, for example, fell 4 percent and Amazon shed 6 percent of its value on the day. Google’s parent company, Alphabet, also took a 3 percent tumble.
In addition, the Dow Jones fell nearly 7 percent, to 22445.37, which nearly doubled the decline from the rest of the year. Thus, the Dow is down 16 percent on the year. Also, the Standard and Poors 500 fell more than 7 percent, to 2416.58, bringing its total decline for the year to 18 percent. Both indices also fell from all-time highs.
Back to the Dow Jones, though, this 414.23 points close on Friday came amid a quite frantic trading. At one point, the blue-chip index was actually up 300 points—early in the day—but within an hour of reaching this height, it plummeted back into negative territory. Initially, the rally came out of the Federal Reserve Bank’s New York President John Williams commenting that it could potentially reassess the interest rate policy and balance sheet reduction in a couple of weeks if the economy continues to slow.
Those gains, of course, quickly disappeared because investors saw this quick pop as an opportunity to sell more at a high price. Apparently, investors and traders were quite convicted this week as more than 12 billion shares in total changed hands on Friday throughout the US exchanges. This is the heaviest trading volume in two years.
Here is a quick summary on the day:
The Nasdaq Composite fell 8.3 percent on the week for a total of 22 percent down from its record in August
The Dow Jones Industrial Average saw its worst percentage drop since October of 2008, falling 6.8 percent to end the week at 1,655
The Standard and Poor’s 500 Index dropped 7 percent on the week for a total of 17.8 percent down from its record