It seemed inevitable that after six consecutive days of declines, stocks would bounce back strongly. And they did.
On Thursday, the Dow Jones Industrial Average soared more than 400 points, or 1.6%. The S&P 500 index rallied almost 50 points, and the Nasdaq Composite skyrocketed 200 points or almost 3%.
Alas, it didn’t last. Late Thursday afternoon, Amazon reported record third-quarter profits, but slowing revenue growth and holiday-season sales projections that were much, much lower than Wall Street had projected.
Down, down went the stock, plunging 8% in after-hours trading. Alphabet, parent company of Google, followed suit, losing 4% of its value after it reported strong earnings but slower sales growth.
Asian markets sold off Friday, followed by Europe and the Nasdaq Composite opened sharply lower—and why wouldn’t it, as two of its great bellwethers reeled. The Nasdaq, Dow and S&P 500 closed down sharply Friday.
So, how low can we go?