(SOURCE) By Michael Snyder – Is Ebola going to cause another of the massive October stock market crashes that Wall Street is famous for? At one point on Wednesday, the Dow was down a staggering 460 points. It ultimately closed down just 173 points, but this was the fifth day in a row that the Dow has declined. And of course Ebola is one of the primary things that is being blamed for this stunning stock market drop. Since September 19th, we have seen the S&P 500 fall about 7 percent and the Nasdaq fall nearly 10 percent. The VIX (the most important measure of volatility on Wall Street) shot up an astounding 22 percent on Wednesday. So many of the ominous signs for the markets that I wrote about on Tuesday are now even worse. If a handful of Ebola cases in the United States can cause this much panic in the financial world, what would a full-blown pandemic look like?
Of course Ebola is not the only reason why stocks are declining. Just look at what is happening over in Europe. The European Stoxx 600 index is already down a whopping 11.4 percent from the high that it hit just 18 days ago. That is officially considered to be “correction” territory.
And Greece experienced a full-blown stock market collapse on Wednesday…
As if the world didn’t have enough to be worried about (ISIS, Ebola, slowing China, Ukraine, slowing Germany, Fed tightening, etc.) now look what’s back: Greece. And in a big way.
The stock market is down over 9% on Wednesday, which is about as big as crashes come.
And the banks are getting absolutely smashed.
In general, markets tend to fall faster than they rise.
When there is a sudden downturn, the price action can be violent. And just like we saw back in 2008, financial stocks are leading the way. Just check out what happened to some of the biggest banks in America before the final bell sounded…
Volume leader Bank of America, down 5%, Citigroup, off 5.5%, and JP Morgan, down 4.6%, were particularly hard hit.
And thanks to Ebola fears, airline stocks plummeted as well…
Airline stocks were roiled by the prospects of curtailed travel due to the spreading Ebola virus. United Continental fell 4% and American Airlines was off 4.3%. Among tech stocks, Intel lost 3.3%. Apple fell 1.7% and Microsoft slipped 2.3%.
An increasing number of voices are concerned that we could be on the verge of a repeat of what happened back in 2008.