- Investors in American stocks took somewhat of a reality check on Thursday, and marked down stocks.
- The irrational exuberance that has prevailed in recent months however has only been sidelined, and will likely come roaring back.
- Surprisingly as stock fells, the greenback slid along with it. Normally it rises as stocks fall.
NEW YORK, New York – Investors in American stocks took somewhat of a reality check on Thursday, and marked down stocks.
The irrational exuberance that has prevailed in recent months however has only been sidelined, and will likely come roaring back.
“There was a lot of irrational exuberance built into things heading into the year … then we started to enter an environment where risk actually became a factor once again and notably inflationary risk,” Peter Essele, head of portfolio management at Commonwealth Financial Network in Boston told Reuters Thomson Thursday.
“Now it’s a question of whether the fundamentals are going to match the level of prices that currently exist in the market.”
At the close on Thursday the Dow Jones had dropped 119.68 points or 0.38 percent to finish at 31,493.34.
The Standard and Poor’s 500 slipped 17.36 points or 0.44 percent to 3,913.97.
Technology stocks fared worst with the Nasdaq Composite dropping 100.14 points or 0.72 percent to 13,865.36.
Surprisingly as stock fell, the greenback slid along with it. Normally it rises as stocks fall.
The dollar had been flexing some clout over the past two days but on Thursday the buyers vanished.
The euro firmed back up to 1.2091 towards the New York close Thursday. The British pound firmed to 1.3975. The Japanese yen edged up to 105.65. The Swiss franc was stronger at 0.8960.
The Canadian dollar strengthened to 1.2679. The Australian dollar rose to 0.7765. The New Zealand dollar was in demand at 0.7217.
In London , the FTSE 100 dived 1.40 percent. The German Dax was off 0.16 percent, while the Paris-based CAC 40 fell 0.65 percent.
On Asian markets, in Japan, the Nikkei 225 shed 56.10 points or 0.19 percent to 30,256.09.
The Australian All Ordinaries fell 3.30 points or 0.05 percent to 7,155.50.
The Hang Seng in Hong Kong dived 489.67 points or 1.88 percent to 30,595.27.
China’s Shanghai Composite returned to trading Thursday after an extended break for the Chinese New Year. The key index climbed 20.27 points or 0.55 percent, to close at 3,675.36.