US Market Indexes Fall Further, Dow Closes With -3.15% Loss

Dow falls 500 points as rising Treasury yields drag down market

Dow falls 500 points as rising Treasury yields drag down market

"We have interest rates going up at a clip that's much faster than certainly a lot of people, including myself, would have anticipated".

The Fed has been gradually raising interest rates over the past two years, after not having increased them since the recession.

Stocks have slumped over the last week as a combination of strong economic data and positive commentary from Federal Reserve leaders sent bond yields rocketing higher as investors bet that interest rates will keep rising. On Wednesday he said he thought policy makers were "making a mistake" and said the Fed had "gone crazy". Amazon skidded 4.8 per cent to $1,781.21 (U.S.).

"It is a ideal storm for technology right now with the tariff war with China and weaker demand for chips", Nauman said. The worldwide lender cited trade tensions and emerging markets as it downgraded its global growth forecast for this year and next.

Adams said those worries are affecting technology and consumer-focused companies as well even though companies such as Alphabet, Amazon and Facebook have long had very high profit margins. Australia's S&P/ASX 200 slipped 2.4 percent to 5,906.00. Kinahan said investors don't know what to do because stock prices are skidding, but bond prices have also dropped sharply, which limits the appeal of bonds as an investment.

U.S. stocks tumbled for a second straight session on Thursday (Oct 11) as volatility reigned on Wall Street amid worries about higher interest rates and trade wars.

The 800-point drop of the Dow Jones Industrial Average on October 10 may be a blip, and so could the almost 5% decline over five days in the S&P 500.

The benchmark index, the S&P 500, experienced its sixth straight day of losses, falling 2.1pc to 2,728.

The financial sector fell 2.9 percent, also hurt by a 2.7 percent drop in bank stocks a day before three of the biggest banks were to report quarterly results. It's fallen 6.3 per cent over the last five days. The Dow and other major US stock indexes fell more than 3%.

U.S. stocks notched solid gains in the third quarter as investors brushed aside worries about trade wars and focused on strong corporate earnings and solid U.S. economic data.

Amazon has soared 50 percent this year, but has fallen 14 percent from its all-time high in early September.

"It's a risk-off environment as investors are focusing on spiking yields and taking profits off the table as they are concerned about whether the bull market is actually coming to an end", said Ryan Nauman, market strategist at Informa Financial Intelligence in Zephyr Cove, Nevada.

Interested in Stock Market?

The Japanese yen strengthened 0.01 per cent versus the greenback at 112.29.

The euro and sterling rose, underpinned by optimism for a Brexit deal, while the USA dollar lost ground against a basket of currencies even as US yields hovered near multiyear peaks.

U.S. crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09.

"There is more optimism that they will find some agreement between Britain and the European Union before Brexit", said Steve Englander, global head of G10 FX research at Standard Chartered Bank in NY.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.