Dow and S & P 500 were each down about 7.8% to Monday. This is the biggest decline for every key market boom since 1931, according to data from LPL Research. But these losses in the depression were much greater: the S & P 500 doubled 14.5% while Dow threw 17%.
However, in December 2018, swoon investors are nervous that earnings growth may have peaked this year. They are worried that the economy may slow down in 2019 due to continued trade tensions with China and interest rate hikes of the Federal Reserve.
Dow and S & P 500 are both in the red for the year and are making stocks on track to get their worst annual losses since the 2008 big deal ̵
But investors can still hope that the markets will turn around for the last days of the month (and the year).
December is usually a very solid month for the market. Professional money managers tend to buy best-selling stocks to make their portfolios look good – a phenomenon called window dressing.
It's also the mysterious Santa's rally effect. The market tends to work well in the last week of the year, making some chalk up to the bright trading volume with so many people outside of the Christmas holidays.
For this purpose the shares stood slightly more than 1% Tuesday morning.
So now the market's current monthly loss is more on par with the poor market trend in December 2002, when Dow and S & P 500 each fell more than 6%.