Global stocks sink after major US index enters correction

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Amazon rose 2.2 percent. On Tuesday it rallied another $5.22, or 14.7 percent, to $40.84.

But this week's market slide has demonstrated that old saying on Wall Street is true - "you buy on the rumor and sell on the news". While U.S. companies mostly did well at the end of 2018, a number of them had a weak finish to the year.

On its way there, the Dow took several harrowing turns during the day, opening with a plunge of 567 points - coincidentally, the exact same amount it wound up gaining at the closing bell.

The market began falling in the first few minutes of trading and the pace of the declines got worse as the day wore on. That only happened eight times all of past year.

Major U.S. indexes set their latest record highs just two weeks ago.

The Dow Jones industrial average fell 98 points, or 0.4 percent, to 24,800. The S&P 500 gained 25 points, or 0.96 percent, to 2,606. The Nasdaq composite was up 115 at 7,083.

In the year so far, the Dow is down 858.76 points, or 3.5 per cent; the S&P 500 is down 92.61 points, or 3.5 per cent; the Nasdaq is down 126.23 points, or 1.8 per cent; and the Russell 2000 is down 71.72 points, or 4.7 per cent. The selling spread to overseas markets.

Insider Activity of Atossa Genetics, Inc. (ATOS)
The stock is now moving above its 20-Day Simple Moving Average of 37.76% with a 50-Day Simple Moving Average of 72.75 percent. A trend analysis is a method of analysis that allows traders to foresee what will come about with a stock in upcoming days.

"If investors look at underlying earnings growth and the fundamentals of the global economy, there is reason for optimism", said Neil Wilson, senior market analyst at ETX Capital. The move sent markets tumbling. "It is now up 187 points so we are back up today".

Tuesday was the busiest day of trading on the New York Stock Exchange since November 10, 2016, two days after the presidential election.

Before trading in the US began Wednesday, global markets flashed signs of stability, with shares in Japan finishing up 0.2% and stocks in Europe gaining strength and closing 2% higher. That's less than the 10 percent drop that is known on Wall Street as a "correction".

In early morning trading in Hong Kong, the Hang Seng was down 3.6% while Tokyo's Topix had fallen 2.5%.

S. stocks dipped modestly on Tuesday, swinging wildly between positive and negative territory, a day after the Dow and S&P 500 indexes saw their biggest one-day declines in more than six years, while a world stock index dropped more than 1 percent. The country's 10-year yield almost surpassed a four-year high of 2.885 per cent in the morning trading on Thursday, a level that helped trigger a global sell-off in equity markets on Monday, reports Xinhua news agency.

Global markets also fell. The euro was up 0.4 per cent at $1.2415 while the dollar rose 0.1 per cent to 109.22 yen. The yield on the 10-year Treasury note rose to 2.80 percent from 2.71 percent. The Dow quickly recovered much of that loss.

The sell-off is reportedly driven by a fear of central banks hiking interest rates to contain inflation, as dwindling unemployment drives up wages. The VIX closed up about 24 percent. Eastern Time. The DAX index in Germany fell 294 points, while the FTSE 100 in England plummeted 193 points. A correction is not the same as a bear market, which is defined as when a stock index or individual stock falls 20 percent from its most-recent peak.

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