All three major indexes are now slightly lower for the year. The Dow is around 2,400 points off its peak.
“The highways will be crowded this evening as the Thanksgiving rush will begin in earnest, but this morning investors are rushing for the exits,” Paul Hickey, co-founder of Bespoke Investment Group, wrote to clients on Tuesday.
The Dow lost nearly 400 points on Monday as well. This week’s selloff marks a continuation of a glum two months on Wall Street. The S&P 500 dipped back into a correction, marking a 10% retreat from the index’s record closing high on September 21.
“Put simply, stocks have already started to price in the risk of an economic slowdown,” Goldman Sachs chief US equity strategist David Kostin wrote to clients on Tuesday.
“The market is speaking loudly that bad news is coming,” Morgan Stanley equity strategist Michael Wilson wrote to clients.