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
No. 1-13
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.