Markets fell around the globe Thursday in a broad selloff that started in Hong Kong and extended through U.S. trading. We’ve been here before in 2016, but this one was different, with banks in the line of fire and central banks getting some of the blame. Here’s how we covered it:
Reasons for concern:
Take a run back through our Live Blog, which covered the day blow by blow in real time. Some highlights: The S&P 500 tested its low of the year and passed; the six biggest U.S. banks have lost more than $235 billion in market value this year; bank stocks are now performing worse than energy stocks in 2016; and Pimco declares that negative interest rate policies implemented by central banks are driving market volatility this year, not easing it.
“The markets see this club of central bankers barreling down this path which is really experimental for a number of reasons and doesn’t seem well thought out in terms of the impact it could have,” Scott Mather, the firm’s chief investment officer for U.S. core strategies, says in an interview.