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Dow's Sudden 200-Point Plunge Echoes Growing Concerns About Stock Market Crash, Crypto Coins News

Dow's Sudden 200-Point Plunge Echoes Growing Concerns About Stock Market Crash, Crypto Coins News


  • U.S. stocks plunge through the morning session, with the Dow falling over points.
  • The CBOE Volatility Index jumps more than%.
  • Calls for a steep market correction are growing louder.

The Dow and broader US stock market plunged on Monday, erasing earlier gains as concerns about overvalued asset values ​​reverberated across Wall Street.

Dow Plunges; S&P
, Nasdaq Follow

All three major stock indexes traded sharply lower at the start of the week, reversingearlier gains for Dow futures. The blue-chipDow Jones Industrial Average (DJIA)sold off as much as points. It was last down 177. points, or 0.6%,

The Dow suffered a brisk selloff on Monday but is still on track for yearly gains of around | Chart:Yahoo Finance

The broad S&P 823 Index of large-cap stocks fell 0.6% to 3 , 391. 100. Ten of primary sectors traded lower, with information technology leading the pack. Communication services and discretionary shares also under-performed the broader index.

Meanwhile, the technology-focused Nasdaq Composite Index fell 0.8% to 8,

.

The CBOE Volatility Index, commonly known as the VIX, spiked on Monday to its highest level in three weeks. The so-called ‘investor fear index’ spiked more than 15% to hit. (on a scale of 1 –************************************ where 20 represents the historic average.

Overvalued Stocks Could Face Steep Correction, Analysts Warn

Even with Monday’s sudden reversal priced into the market, US stocks are on track for one of their best years in over two decades. Year-to-date, the major indexes have gained between (% and) **********************************************************% thanks to renewed Federal Reserve interventionand optimism around US-China trade talks.

Despite the rosy outlook, calls for a steep correction are growing louder as investors grapple with overvaluation risks, geopolitical uncertainty and slowing overseas economies. EvenBerkshire Hathaway CEO Warren Buffetthas complained that equities have become too expensive to acquire in recent years.

AsCCN reported over the weekend, one of the world’s largest fund managers is warning that a steep market correction could come as early as (***************************************. Joe Davis, Vanguard’s head of investment strategy,says there’s a (*************************************************% chanceof a major downturn next year. The investment firm manages more than $ 5.6 trillion in assets.

Chris Harvey, Wells Fargo’s securities head, recently told CNBC that investors can expect a 5% to (**********************************************************************% correction in early (******************************************:

Morgan Stanley Wealth Management has identified ten major risksthat could threaten the decade-long bull market in (**************************************. At the top of the list are key leadership races in advanced industrialized nations, the emergence of competing trade blocs and Chinese political economy.

These fundamental risks have made gold a more attractive investment option. On Friday,gold’s future price touched fresh three-month highs. The yellow metal is a proven safety net during periods of economic and geopolitical turmoil but its primary driver is real interest rates.

This article was edited byJosiah Wilmoth****************************

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