October's sell-off: How bad was it?
October is set to end as a rough month for the stock market, with all of the major averages sharply lower.
While stocks were rebounding on Wednesday, as of closing bell Tuesday the Dow was on pace for its worst month since August 2015. The S&P 500 was on pace for its worst month since May 2010 and the Nasdaq could finish with its worst month in 10 years.
Looking at moves for October alone, October 2018 could finish as the worst for all three indexes since October 2008.
Tech stocks were particularly hard hit so far over the month, with Amazon down over 20 percent, Netflix about 18 percent, Google 9.6 percent and Microsoft about 6 percent.
Volatility kicked up this month, with stocks seeing some steep swings and rapid direction changes during multiple trading sessions.
But, the volatility and value losses won’t necessarily continue. Commenting on the markets moves Friday, Goldman Sachs analysts said, “We expect continued positive economic data and prospective EPS growth (+7% in 2019) to support an S&P 500 rebound to our year-end target of 2850.”
As previously reported by FOX Business, according to Wells Fargo’s Investment Institute, the decline could mean opportunity.
“Fundamentally, we see the economy as being a long way from a recession,” the bank said in a note. “But markets are adjusting and repricing a number of key items” the bank communicated in a research note, advising investors to be ready to increase U.S. equity exposure, but know that this could be “the end of easy.”