This week is likely to be another volatile one for the financial and mortgage markets. Scheduled activities don’t begin until Wednesday afternoon, but we are still dealing with the market fallout from last week’s tariff announcements where the Dow lost over 3,900 points and the Nasdaq shed over 2,000 points Thursday and Friday. The bond market benefited as investors sought safety from the massive stock sell-off. Will stocks resume their selling tomorrow for a third straight day of heavy losses, possibly drawing more funds into bonds? This evening’s futures signals another day of big losses on Wall Street, so at the moment the safe bet is yes unless something unexpected happens overnight.
Some analysts fear another big stock sell-off tomorrow, something to the likes of Black Monday that happened on October 19, 1987. There are so-called circuit breakers in the markets now that didn’t exist back in 1987 that could prevent such a drastic crash in one day. However, there is plenty of concern that tomorrow will be another ugly day for stocks because the pattern and events over the past couple of days are similar to what transpired leading up to Black Monday.
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Bonds
Market Closed
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Dow
Market Closed
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NASDAQ
Market Closed