Though it was another disappointing day, note that the Dow was down 690 points at 3:40 PM ET and then rallied 170 points into the close. The S&P 500 and the NASDAQ closed at new lows.
Despite all the worries about redemptions and forced selling, volume was notably light until the last 45 minutes. It really was more of a buyers' strike as bids simply got cancelled.
That changed a bit in the last 45 minutes, as volume picked up a bit, but 6.1 billion shares for the NYSE is still moderate compared to recent activity.
The primary impetus for the weakness was a commodity selloff: the dollar strength and global slowdown concerns created a negative feedback loop.
- Oil down 7.5%
- Copper down 9.6%
- Gold down 5.9%
- Corn down 6.3%
As a result, the weakest section of the market was again commodity-based stocks and commodity based countries:
- Energy stocks: down 10.4%
- Commodity stocks: down 7.7%
- Brazil: down 10.0%
- Argentina down 10.0%
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