The US Stock Exchange will begin trading on Monday with major stocks down by more than 20% this morning as traders look to break their long-term losses.
Traders in Shanghai, Hong Kong and New York were trading the S&P 500 down about 5% before the US index fell below the 10,000 mark.
“We are still looking at what happened yesterday and will be watching closely to see if it’s an outlier, or if we’re actually seeing a pattern,” said Brian Dube, an investment strategist at Morningstar in New York.
The S&p 500 has fallen over 20% in 2017, a steep drop that’s driven by two major indexes that have been in freefall for months.
On Monday, the Nasdaq will be trading at a loss for the first time since late April, when the index dropped 7%.
The Dow Jones Industrial Average is down about 4% for the year.
The Nasdaq is down 6.7%.
“It is very difficult to see the S &p 500 actually climbing, but it’s certainly trending up,” Dube said.
“I think that it’s just a matter of time until the S.&.p. 500 starts to move, and then we’ll know if the trend is slowing down or accelerating.”
A stock is in free-fall if it drops 30%, the S+P 500 is down 20% or more, and the Dow Jones is down 10%.
“I don’t think you can really look at it as a trend,” Dubes said.
“You’ve got to look at what’s happening on Wall Street.”
It’s also a time of year when investors are looking to capitalize on the energy bubble that has popped in the markets.
“It’s going to be interesting to see how long this trend lasts, and if it continues,” said Paul Bohn, an equity strategist at Raymond James in New Orleans.
“That’s really what’s going on.
It’s really just a question of whether the market is really slowing down.”
Traders walk to the New York Stock Exchange on March 5, 2019.
The stock market is down more than 50% since March 4, 2017.
The Dow is down 30% this year.
The Nasdaq Composite is down 14% this calendar year.
Trading has been halted for the rest of the day.