The Dow Jones industrial average and S&P 500 tumbled into correction on Thursday.
US stock futures whipsawed ahead of the opening bell but indicated a slightly higher open as the sell-off in stocks continued around the world.
At 8:38 a.m. ET, futures trading showed the Dow was on track to open up by 126 points (0.53%), the S&P 500 up by 18 points (0.71%), and the Nasdaq up by 46 points (0.74%).
The Dow and S&P 500 plunged into correction on Thursday, defined as a 10% drop from the most recent highs. According to Ryan Detrick, a senior market strategist at LPL Financial, this was the first time S&P 500 fell from a new all-time high to a 10% correction in nine days or less.
The worst of the sell-off began last week Friday, when data on wages showed inflation may be picking up and could prompt the Federal Reserve to combat it with higher interest rates. This week, the market sell-off was amplified by so-called “ target volatility funds “ that rushed to sell stocks and buy protection against higher volatility.
Stock markets around the world that opened ahead of the US trading day on Friday were in sell-off mode.
Read more coverage of the market meltdown:
The stock market just had a violent correction, and ‚it just doesn’t feel like we’ve hit a bottom‘
JPMorgan has found a trigger for the next big market collapse
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‚The selloff is starting to feel more real‘: Wall Street explains why this massive stock drop is different
CITI: There’s a ‚clear winner‘ for investors who want to cash in on the market’s biggest fear
The chief strategist at a $695 billion money manager tells us why ‚we’re at a watershed point in markets‘
One of the biggest narratives behind why the stock market just went haywire is wrong
The infamous ‚VIX Elephant‘ trader just returned to harvest the gains he made when stocks went haywire
Fed President Kashkari gives us his take on the stock market’s plunge and the economic data that triggered it
