Although indexes such as the Dow Jones industrial average and the S&P 500 reported record highs just last week, they dropped sharply yesterday along with their exchange traded fund (ETF) counterparts.
The Dow fell 226.47 points, the S&P 500 dropped 30.53 points and the Nasdaq declined by 50.72 points yesterday, according to the Associated Press. Disappointing earnings reports and continued subprime industry worries are the main factors in the recent slump, which is not a shock considering the record highs occurred before earnings reports were released. Experts say earnings reports likely will continue to affect the stock market and related ETFs.
This shouldn’t cause investors concern as most major indexes are still above their long-term trend lines, as shown in the chart below.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.