We’ll see how the rest of the day pans out. At this moment we’ve got an hour and a quarter to go. But medium term sentiment on Wall Street appears to be be shifting as we see yet another day of broad selling.
It’s been a weird ride since midsummer. Mostly down but with a few big pops up. The Dow is off 2000 points or so from its high. People are starting to look around with a little more adrenaline in thier veins. Is this it? Have we run out of gas? Are the predictions of the Fed critics coming true?
Again, we’ll see.
The Nasdaq composite fell more than 3 percent, pressured by a more than 7 percent decline in the iShares Nasdaq biotechnology ETF (IBB). The ETF fell further into bear market territory, or more than 20 percent from its 52-week high.
“I think it’s a lot of panic. It’s a lot of people who came in recently,” said Paul Yook, portfolio manager at BioShares Funds. “In hindsight clearly the market did not price in this political risk.”
The Nasdaq composite became the last of the three major averages to flash a death cross, in which the 50-day moving average falls below the 200-day. The index is on track for its worst quarter in about three years.