S&P 500 Slips into Bear Territory on Worst Christmas Eve Trading Ever

The S&P 500 went into bear market territory today on the worst Christmas Eve trading session ever, percentage-wise.

Nasdaq Composite Bear Market

Nasdaq 100 Index Bear Market

Dow Hangs By Thread

Russell 2000 Bear Market Accelerates

Amazon Bear Market

If you thought Amazon was a buy at $2000, you thought wrong. Expect another 60% decline or more, from here.

Christmas Eve Scorecard

  • S&P 500: -2.71
  • Nasdaq Composite: -2.21
  • Nasdaq 100 Index: -2.43
  • DOW: -2.91
  • Russell 2000: -1.95

According to the Financial Times, this was the worst Christmas Eve session in history.

Mike "Mish" Shedlock

Comments (28)
No. 1-12
Ted R
Ted R

Mish: Any idea where we might see the bottom of this market? Some of the hedge fund guys I deal with think we might see a 50% or more decline of the DJIA if this problem isn't handled correctly and investors really begin to panic.. And on a lighter note thank you for this wonderful website and all the great posts. Merry Christmas to you and yours.

Bam_Man
Bam_Man

So far with only a few trading days remaining, the worst December EVER. We are talking worse than 1931, so it is clear that this bubble has burst. Da ship be sinkin'.

Jojo
Jojo

Happy Christmas and a merry new year to all!

Carl_R
Carl_R

One of the things that has given strength to stocks over the last decade was programmed buying as baby boomers automatically added to their 401k and/or IRA. Now they are starting to retire, and rather than adding to those, they will begin to withdraw. In preparation for retirement, traditional planning calls for shifting the asset mix away from stocks and into bonds to eliminate risk as people get over the age of 60. At younger ages, the thinking is that they can ride out bear markets, but as they approach retirement, they don't have that luxury.

As Mish is fond of pointing out, if retiring people sell stocks and buy bonds, someone else has to sell bonds (or issue more) and buy stocks. However, those people would want a shift in relative pricing before they are willing to do so, so stocks would be expected to fall in the process.

Sechel
Sechel

i don't know what will happen on Wednesday but i do know trump does not have a competent team to handle a crisis.

mkestrel
mkestrel

The stock market is NOT the economy. Therefore it can fall 100% for all I care. Burn baby burn.

gregggg
gregggg

I watched this scenario last night into the wee hours last night with the DOW futures up 80 to 120 points, only to check this morning and see that everything went upside down again, this time around 7:00 AM. We have seen this same thing several times this month. Quoting the 'experts: "This time, it's different". Yep it is... it sure is. Until the opening bell.

Jojo
Jojo

Robert Reich The Megalomaniac and the Stock Market Monday, December 24, 2018

Trump doesn’t want the public to think the stock market has tanked because of Trump’s government shutdown, his trade war with China, and the $1.9 trillion increase in the nation’s debt caused by his tax cut for corporations and the wealthy. (Actually, these are the major reasons for the market’s drop.)

So he’s blaming the Fed and its chair, Jerome Powell, for raising interest rates. And he’s ordered his staff to find a legal rationale for removing Powell. (It’s highly unlikely Trump has legal authority to do this, but like every other illegal thing Trump has tried, it may end up in the federal courts.)

....

Mike Mish Shedlock
Mike Mish Shedlock

Editor

"Mish: Any idea where we might see the bottom of this market?"

I am going to do a post on that, but in the meantime, we are not even close

Sechel
Sechel

History will record that trade wars and dysfunctional government were two contributors to the market decline. No one will write that it was a Federal Reserve interest rate decision.

lol
lol

There is no stock "market" any moar it's the central bank "market" Why are "markets" crashing? The economy is "booming",record low unemployment "rate",GDP "rate"of 3%,inflation "rate" near record lows.so why prey tell are markets collapsing?"markets" should like the economy be "booming",unless ,unless the central banks have decided they would rather get rid of trump,and the quickest most efficient way of doin that is crash the stock "market"

Realist
Realist

Actually, several stocks are reaching attractive levels, and I will be buying some of these stocks to add to long term positions. I am a long term investor, and I am highly diversified. Unlike Mish, I do not think that the markets will drop too much more, but if they do, I will simply purchase more attractive companies at even lower prices. This has served me well throughout my life.