Dow Jones falls more than 1000 points as market losses mount

One machine is likely to do the same as another when confronted with the same conditions whereas a human trader is likely more quickly, for example, to conclude that a stock has been over-sold and to start buying speculatively.

Yet another Federal Reserve official said today that the central bank is not spooked by stock market fluctuations.

On Monday, the financial, health care and industrial sectors fell the most, but declines were spread broadly as all major 11 S&P sectors dropped at least 1.7 percent.

This looks like being the worst week for stock markets since 2011.

Big drops Friday and Monday erased the Dow's gains for the year. The S&P 500 is down nearly 8% from its all-time high. But stocks have retreated after more bad news in the bond market, and the Nasdaq even sank into the red.

While the market turbulence can be alarming, analysts urged investors to stay calm because the economic backdrop is strong. If your time horizon is long enough, betting on stocks has always been a victor - especially if you have the courage to buy after a big drop. The stock dropped $28.24 to $59.80.

The Dow Jones is on track to suffer the biggest weekly decline it has seen since October 2008, after falling over 1,000 points in yesterday's trading session. The Nasdaq composite lost 125 points, or 1.8 percent, to 6,926. "It's hard to make the case for why we should be down more than 10% - unless we encounter negative economic news". "For those investors that may have forgotten, this is what a market decline feels like". That hasn't stopped the market from rising steadily over time.

The US stock market slump continued, with the Dow Jones tumbling 587 points at 24,305 at the time of writing.

"The [economic] fundamentals haven't changed, they haven't deteriorated". Average hourly earnings have risen by 75 cents, or 2.9 per cent over the year - the fastest it has grown since June 2009. Don't miss the chance.

So, unless you make a living from punting and short-term speculation, don't panic.

A rout in United States stocks overnight, a slump in Chinese shares and worries over rising borrowing costs and volatility took their toll on equity markets in Europe and Asia as well. The smarter thing to do is to get over your immediate emotional response and be smart about your portfolio.

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"People are dealing with the shock of seeing real inflation for the first time in a while", said Bruce McCain, chief investment strategist at Key Private Bank.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. "They could be in full panic mode right now". It is not a case of choosing those which, to the best of one's judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest.

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