Investors are preparing for further price fluctuations on Thursday after the biggest sell-off in the US market since February has been followed by significant losses in Asia and Europe, fearing a slowdown in growth due to rising interest rates and trade tensions.

In the volatile early phase on Wall Street, the Dow Jones industrial sector lost up to 151 points, but it is trending down after falling more than 800 points on Wednesday. Mass selling in the United States spread abroad overnight, with Japan's main stock index falling by nearly 4% and Shanghai shares selling off more than 5%. Equities also lost about 1% in Europe.

After Wednesday's rout, Wall Street professionals wonder if the current slide is a sign of more serious problems for a bull market over nine years old.

Citing a still-low recession risk in the United States, the current fainting is more likely a mere "correction" – or short-term break – in a bull market, said Hugh Johnson, chief investment officer at Hugh Johnson Advisors. , a money management company in Albany, NY.

Wall Street professionals will monitor a few key points today:

Will the bargain hunters intervene?

Investors will look for signs of stabilization in the form of investors seeking to buy shares at lower prices after the major drop recorded yesterday. After the 20 daily declines of more than 3% of the S & P 500 index dating back to 1950, the closely watched index rose 1.3% on average five days later and 1.7% a month later, according to data from Strategas Research. The partners.

Key level on the S & P 500

The long upward trend of the S & P 500 has not been broken yet. But there is a chance that this will happen. The stock index of large companies closed at 2785.68 Wednesday, slightly above its long-term trend line, or the average price of the last 200 trading days. If the index could remain above its 200-year moving average of 2766, that would be a positive sign and create a support line for the market.

Behavior of technology stocks

Technology stocks, long-time market leaders, suffered the biggest declines yesterday – and Wall Street will monitor to see if they can bounce back or at least show signs of stabilization. The Nasdaq composite, which is full of technology stocks, fell 4.1% Wednesday. And well-known technology stocks like Amazon, which lost 6.2%, Netflix (8.4%) and Apple (4.6%) were hit hard.

At the start of the negotiations, Amazon was down 3.6%, Apple was down 2.3% and Netflix down 0.7%.

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Investors received good news regarding economic data early Thursday. Consumer price inflation in the US in September was below expectations at 0.1%, suggesting that inflationary pressures are not strengthening.

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