On November 19, 2018, Dow Jones Industrial Average fell 395.78 points or 1.56% to 25,017.44. The S&P 500 dropped 1.7% to 2,690.73 as the technology sector pulled back 3.8%. The tech-heavy Nasdaq Composite lagged, falling 3% to close at 7,028.48 as Amazon dropped 5.1%.
Asia markets all plunged on the following day. SET slumped to 1,612.03 points, decreased 24.45 points or 1.49%, NIKKEI fell 1.09%, SSEC sank 2.13%, HSI dropped 2.02%, ASX 200 skidded 0.38% and KOSPI lowered 0.86%.
As investors thought the markets could not be any worse than this, European markets also joined the group, making the situation even worse. DAX closed 1.58% lower, FTSE skidded 0.76%, CAC plunged 1.22%, STOXX 600 fell 1.09%. Tech stocks, just like in NASDAQ, were among the worst performers during early afternoon deals. The sector slipped more than 1.9% after sharp losses on Wall Street compounded souring market sentiment in Europe. The banking index also dipped 2.2%.
Right after the plummet in European stock markets, the Dow was down nearly 600 points, while the S&P 500 dropped 1.3% in the morning session on Tuesday. The stock turned negative for the year as a decline in Target that fell 10.4% after reporting weaker-than-expected earnings in 3Q18.
The plummet was not just stock markets, Oil prices also plummeted as well by snapping four days of gains and renewing a sell-off that has plunged crude futures into bear market.
U.S. West Texas Intermediate (WTI) plunged more than 6% to $53.63, its lowest level going back to October 2017. The contract last traded at $54.37, down $2.83, or 5% by 12:02 p.m. ET.
Brent crude, the international benchmark for oil prices, dropped $3.41, or 5.1%, to $63.38 a barrel. Brent hit a fresh eight-month low on Tuesday.
Considering the circumstance of the current situation in global markets, investing in shares may not be as productive as it should be. Thus, Goldman Sachs has made a suggestion for investors to be cautious in volatile situation like this. VIX index can be used to measure investors sentiment.