Dow drops 545 points as stock market slide continues
Dow drops 545 points as stock market slide continues
The broad-based S&P 500 slumped 3.3 percent to end at 2,786.46
12 October, 2018, 01:32
A surge in Treasury yields appears to be fueling the losses, as the 10-year US Treasury yield spiked last month and has continued to climb throughout October, landing at 3.21 per cent.
Shares in Facebook, Amazon, Apple, Netflix and Google's parent company Alphabet - the so-called "FAANG" stocks that have driven United States markets to all-time highs recently - all fell in NY trading.
The 10-year Treasury yield rose to 3.22 percent from 3.20 percent late Tuesday after earlier touching 3.24 percent.
The S&P 500 was down 55 points, or 1.9 percent, at 2,824-on pace for its worst day since June.
The Dow Jones Industrial Average was down another 150 points in early trading as investor concerns over rising interest rates and the trade war with China continue to mount, but rebounded quickly, moving into positive territory within 25 minutes as bargain hunters emerged.
"The #MAGA theme is unraveling a bit over the past few sessions as two-sided risks have been injected into the USA equity market", Mark McCormick, head of North American FX strategy at TD Securities, wrote in an email. And if history is any guide, we won't have to endure too much, as the S&P has been up an average of 14.5% a year after all midterm elections going back to 1946, while all 18 midterms saw higher returns 12 months later, he notes. Heating oil fell 1.2 per cent to $2.39 a gallon.
Gina Martin Adams, the chief equity strategist for Bloomberg Intelligence, said investors are concerned about the big increase in yields, which makes it more expensive to borrow money.
Shares in upscale jewellery retailer Tiffany & Co and perfume maker Estee Lauder both fell 7 percent after a warning from French luxury goods firm LVMH about softening demand in China. The Russell 2000 index of smaller-company stocks fell 30.03 points, or 1.9 percent, to 1,545.38.
The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy. But higher interest rates can slow economic growth and erode corporate profits.
Amazon shares declined 6.2% on Wednesday.
"If the Feds are insane, this market reaction is bordering on insanity, as so many negative crosscurrents collide that is merely impossible to find a glint of optimism", he added. The Nasdaq composite rose 15 points, or 0.2 percent, to 7,436.
Asia stock indexes added to the global market's pain on Thursday, with benchmarks in Shanghai, Shenzhen and Tokyo all skidding between 4 and 5 percent.
The Cboe Volatility Index, a measure of expected volatility on the S&P 500, gained more than 11% to 25.50 and held close to its highest level since February.
The dollar fell to 111.94 yen from 112.59 yen, and the euro rose to $1.1594 from $1.1525.
The New York Times reported that Michael was downgraded to a tropical storm at midnight, after leaving much of the coast in ruins. Heavy rainfall will drench Florida's Panhandle, Alabama, Georgia and SC ; up to 12 inches is possible in isolated locations.
Gomez didn't attend the American Music Awards last night and the site notes that her team has been virtually silent recently. Selena Gomez is receiving mental health treatment after suffering an 'emotional breakdown '.
Jack proposed to Eugenie, whose mum is Sarah, the Duchess of York, with a padparadscha sapphire ring surrounded by diamonds. The Earl and Countess of Wessex's children, Lady Louise Windsor and Viscount Severn will be special attendants on the day.
The worst of the winds will impact on Friday morning rush hour, people will be travelling in Scotland for October holidays. There is also the risk of further severe Southerly winds impinging onto Southern and Eastern coastal areas during the day.
He was persuaded by Treasury Secretary Steven Mnuchin that Powell, who was already a Fed governor, would be a force for stability. Mnuchin declined to comment on Trump's latest attack on the US central bank, though he repeated that the Fed has independence.
US President Donald Trump meets with rapper Kanye West in the Oval Office. "I love this guy", Kanye declared in the Oval Office. West said he was diagnosed with bipolar disorder, but then that he was misdiagnosed, and was simply sleep-deprived.
But West himself had a caveat: "Only after 2024". "Day One, solved one of his biggest problems". " I love this guy! " he said. Kanye was The White House when President Trump signed the 2018 Music Modernization Act (MMA), which was passed by U.S.
Turkey has requested a search of the Saudi consulate in Istanbul , after saying that a journalist was murdered within its walls. After three hours of waiting, Cengiz was told that Khashoggi had already left but she says "there's no proof that he came out".
Khashoggi supported efforts to nudge the entrenched ultraconservative clerics to accept reforms in the kingdom. Fully aware that the Saudi government did not take kindly to its critics, Khashoggi turned down this offer.
A buyer would not normally be expected to go through with the purchase if a work is damaged while in the care of an auction house. The video is captioned with a quote by the Spanish artist Picasso, who had said the urge to destroy was also a creative urge.
While Riyadh claimed he had left the consulate after his visit, Turkish police said Khashoggi did not emerge from the building. Tim Kaine (D-Va.) told us on Wednesday, "The burden of proof is now on the Saudis" to show they were not responsible for Mr.
Samsung A9 has four rear cameras
Without actually getting the chance to properly put those four lenses through their paces, it's impossible to assess the A9. Unlike the recently launched Galaxy A7 , the new Galaxy A9 still sports a rear-facing fingerprint sensor.
South Korea walks back on possibly lifting sanctions on North
An editorial titled "Kang flubs it" described her comments as "shortsighted" and said the paper was "dumbfounded" by her remarks. But increasingly North Korean ships have been spotted at foreign harbours, which the United Nations sanctions forbid.
Samsung Galaxy A9 phone has four cameras on it
The Samsung Galaxy A9 is set to go on sale in November this year starting at £549 - retailing over £200 less than the Galaxy S9 . You do lose out on a feature or two, such as wireless charging and the main camera only featuring one aperture.
Trump Criticizes Central Bank for Raising Rates
By convention presidents rarely comment on central bank policy because the Fed is meant to be independent of politics. The US slump, which amounted to a market value loss of over £800bn, had followed falls across much of Europe.
3m Deaths after flash floods in Majorca
The floodwaters tore down trees, swept numerous cars and trucks into piles of twisted metal and buried streets under mud. The flooding also affected phone communications, destroyed two bridges and forced the closure of 11 roads.