Friday, January 8, 2016

2016's Early Carnage

The first week of 2016 is almost in the books, and it hasn't been pretty for the stock market. It's been so bad that both the S&P 500 and the Dow Jones industrial average have posted the worst first four days to start a year in their histories.

The S&P 500 has lost 4.9 percent of its value in the first four trading sessions of the year, losing $864 billion of its value. The Dow has lost 5.2 percent of its value; it's now down more than 10 percent from its recent high back in May.

The triggering event appears to be a selloff in the Chinese stock market. Yesterday, China's market closed after 30 minutes of trading, allegedly due to a problem with circuit breakers. But that wasn't enough to stanch the losses on Wall Street

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