SPRINGFIELD, Mass. (WWLP) – The first day of trading in 2016 was a shocking start to the new year for the New York Stock Exchange. After only about half an hour into the trading day, the Dow was down by more than 400 points, and closed 276 points down at the end of the day. It was the worst start to a new year since 2008.
Experts say that the surprising and historic start to the year shows that what happens at the global level impacts U.S. markets. Many are blaming a drop in China’s main stock index, which fell 7% due to weak manufacturing data there. A similar plunge in June of last year also rattled the global markets, and prompted a multi-billion dollar government intervention.
Financial advisor Mark Teed told 22News that Monday was a new change for American investors, proving that they now need to focus on what the rest of the world is doing on the first day of the year.
“The economy is actually picking up, more people are employed so there’s actually some very good news out there from corporate America so that was the other part of the shock, really most of us woke up thinking it’s going to be a good start to the year. So it was a shock yesterday,” Teed said.
Teed also told 22News that there have only been 14 first days of the year in the red in the last 100 years. Each time that happened, January started slow, but ended strong.