Home Markets Here’s why the stock market just took a nosedive

Here’s why the stock market just took a nosedive

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It’s far from a market in turmoil, but a day after stocks touched record highs it is a market getting drilled with some valid fears.

The Dow Jones Industrial Average tanked nearly 500 points in early afternoon trading Thursday as investors showed concern that the plunge in the 10-year Treasury yield was signaling an economic growth slowdown later this year. Driving that potentially dreaded macroeconomic slowdown would be two factors, traders reasoned. First, the Delta variant of COVID-19 that is sweeping across the world. And two, the Federal Reserve moving to taper its bond purchases before year end.

Hence, the newly expressed concerns by traders on the ever-expanding valuations in many areas of the equities market today. 

“If I do the number-crunching, I put the market at about 4% overvalued. The upside potential between now and the end of 2021 is 0.4%, which is a pretty low number. You never get these numbers exactly right, but it’s certainly not a…

Click here for full article…finance.yahoo.com