The back-to-back selling in U.S. equities is fueling a rally in inverse exchange traded funds that capitalize off the stock market’s pain.
The Dow Jones Industrial Average plunged another 350 points Thursday while the S&P 500 was down 2.1% and the Nasdaq was off 2.7%.
On Thursday, the SPDR S&P 500 ETF (NYSEArca: SPY) fell 2.4%, PowerShares QQQ (NasdaqGM: QQQ) declined 3.1% and SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) dropped 2.3%. All three ETFs were below their 200-day simple moving averages.
According to FactSet data that goes back to 1897, the Dow is on its worst four-day start to a year on record, reports Matt Egan for CNN Money.
“This has all the earmarks of the beginning of a significant stock market correction. Many would argue it’s the beginning of a bear market,” Tim Anderson, managing director of MND Partners, wrote in a client note.