The stock market made you rich, now all that money is gone

The stock market took a major hit today, right after one of the strongest rallies of 2022. The dow is down over 1,000 points, and experts are trying to figure out why the reversal was so powerful and complete.

It could be driven by massive amounts of profit taking by investors who were happy to see the market go up so much yesterday. Either way, it’s a bit of an enigma for those of us who are trying to figure out what’s going on.

According to CNBC:

Stocks suffered their worst day of the year on Thursday, pulling back sharply and completely erasing a rally from the prior session in a stunning reversal that deepened the market’s losses for 2022.

The Dow Jones Industrial Average lost 1,100 points, or more than 3%. The S&P 500 and Nasdaq Composite fell 3.7% and 4.9%, respectively.

The moves come after a major rally for stocks on Wednesday. The Dow surged 932 points, or 2.81%, and the S&P 500 gained 2.99% for their biggest gains since 2020. The Nasdaq Composite jumped 3.19%.

Those gains had all been erased before noon in New York on Thursday.

“If you go up 3% and then you give up half a percent the next day, that’s pretty normal stuff. … But having the kind of day we had yesterday and then seeing it 100% reversed within half a day is just truly extraordinary,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

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