Why the stock market plunged more than 5% on June 11, 2020

Stock market selloff explanations

“Here’s why the U.S. stock market plunged on Thursday: Too many bulls.

You’ll hear other explanations, such as the risk of a second wave of COVID-19 infections and the Fed’s grim outlook for the U.S. economy. But such factors can’t really explain why the Dow Jones Industrial Average DJIA, -6.89% lost 6.9% while the S&P 500 SPX, -5.89% fell 5.9% on Thursday.”

Source: https://www.marketwatch.com/story/the-real-reason-for-the-stock-markets-7-plunge-shouldnt-surprise-you-and-it-happens-every-time-2020-06-11

Another reason for the US stock market plunge, stock market selloff is profit-taking, which is always a good idea about investing, trading. Having a profit investing in stocks should be protected against the stock market volatility. After the recent higher closes for the US stock market profit-taking by investors, traders should be expected. Buying stocks is also about knowing when it is time for selling stocks in investing.

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[…] sectors closed lower as a result of the stock market selloff. Consumer Staples was the best performing sector -3.81%, Energy was the worst-performing […]

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