The stock market’s heart-stopping gyrations in recent days have understandably fueled confusion about the state of the market.
On Monday, Dec. 24, the Dow Jones Industrial Average (^DJI) fell 653 points. The markets were closed on Christmas Day. On Wednesday, the Dow rose 1,086 points, the largest point rise in history. On Thursday, the Dow closed higher by 260 points, after spending much of the morning down by more than 500 points.
So where does all of this leave stocks?
Here’s where things stand: The major stock indexes are down double-digits from their August and September peaks, but year-to-date, the carnage is more palatable:
**S&P 500 (^GSPC) is down 7.3%
**Dow Jones Industrial Average is down 6.8%
**Nasdaq Composite (^IXIC) is down 5.2%
If the declines hold, 2018 would be the first year since 2008 where all three major stock indexes post declines (in 2015, the Dow and the S&P 500 fell, but the Nasdaq was up).
It’s hard to believe the stock indexes are only down single-digits year-to-date given the host of horrendous headlines in recent weeks, such as:
**the worst December for stocks since 1931
**December 24 was the worst Christmas Eve for stocks ever
**On Dec. 24, the S&P 500 closed in bear market territory (defined as a 20% decline from its most recent high)
What about FAANG, a group of high flying tech stocks that have been a staple of the bull market over the past several years? Facebook (FB), Amazon (AMZN), Apple (AAPL) and Alphabet (GOOGL) make up the acronym.
So far in 2018, here are the numbers (they aren’t as bad as you think!):
Facebook is down 24.5%
Amazon is higher by 24.3%
Apple is off by 8.5%
Netflix is up 31%
Alphabet is lower by 1%
Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter @ScottGamm.
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