Here Are The Top Theories For Why The Market Took A Bath

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Photo: Feng Li/Getty Images

Dave Lutz of Stifel, Nicolaus offers some theories about why the market tanked.We summarize:

  • Europe: No money injections into EU banks yet. Financials getting hit hard. Especially Spanish banks.
  • Options expiry: Always a potential thing that creates volatility.
  • NASDAQ falling below technical levels.
  • A Canadian M&A deal falls apart. Risk-Arm bets getting unwound.
  • Asset rotation: Allocation moves from Treasuries to European debt.

Nothing’s that compelling, really, and actually that’s part of what makes this interesting.

Here are some notable movements in the market:

  • Apple -2.5%
  • Chipotle: -15.8%
  • McDonald’s: -4.25%
  • GE: -3.38%
  • NASDAQ: -2.2%
  • Dow down over 200.

SEE ALSO: Why European markets got clobbered >

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