Santa Claus rally is here! The happy face of this NYSE Trader says it all. After rising 109 points, the Dow Jones Industrial Average (DJIA) closed 64.73 points up at 18,024 with Chevron leading the gains that extended to 25 of 30 components. The S&P 500 Index (SPX) also made a record high closing at 2082. Healthcare (pharma, biotech) stocks were the only sector in red on this top closing day, probably as investors moved away from defensive positions back into beaten down energy and industrial stocks, based on the Q3 US GDP growth numbers. Tuesday’s economic reports had the U.S. economy soaring by 5 percent in the third quarter, the most rapid pace in the last 11 years, since the same period of 2003. Read More >>
October 19, 1987 is remembered for its full-fledged stock market crash that shook the global financial markets. In retrospect, no depression or economic recession was sparked by this dramatic fall in prices, but the event is historic nonetheless. Even to this day, no one really knows what caused it. There are different theories for this correction, but its all speculation.
The 1987 crash, known now as Black Monday was the first ever global stock market crash. The collateral damage was staggering, with Hong Kong stock exchange losing over 45 percent of its value, the Australian stock market losing almost 42 percent of its value, the UK market lost over 26 percent, while the New York Stock Exchange (NYSE) lost 22.6 percent. Continue reading 1987 Stock Market Crash
No event in American financial history is more infamous than the Wall Street Crash of 1929 or the Black Tuesday, when the stock market crashed and ushered in a depression that would grip the United States for the next decade. What caused this event and what can we learn from it?
The stock market crash that most people associate with Black Tuesday, was actually a multi-day process. The previous Thursday, the market began its downward slide, with trading setting an all time record with 13 million shares trading hands that day. The Dow had reached an all-time high just a month earlier in September of 1929 with a close of 381.17. A group of bankers met during that Thursday to try to figure out how to stop the slide and they decided to take the same tact that worked to stop the last market panic in 1907. They began to buy massive amounts of blue chip stock to try to reassure investors that the market was holding steady and that they shouldn’t sell everything they had and make matters worse. Continue reading The Wall Street Crash of 1929