Dow ends brutal session with 3.1% loss, Nasdaq down 4%

11 Octobre, 2018, 03:28 | Auteur: Auguste Feret

USA government bonds resumed a selloff after rising to multi-year highs last week, with the 2-year yield rising to 2.906%, its highest level since June 2008.

US stocks plunged to their worst loss in eight months on Wednesday as technology companies continued to drop.

It was the fifth negative day for the S&P 500, and the longest losing streak during the Trump presidency.

Trade-sensitive industrial stocks also fell as tensions between Washington and Beijing persisted.

Today technology stocks saw their worst overall day since 2011 as investors concerns continue to mount over rising interest rates.

Highly performing companies are often hit the hardest when fears rise over rapidly increasing interest rates and the S&P Information Technology Index (INDEXSP:SP500-45) is comprised of some of the world's most valuable technology stocks such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL), and Facebook (NASDAQ:FB).

In further evidence that stocks can rally despite rising Treasury yields, LPL Research found that in all 12 periods of rising 10-year yields since 1996, the S&P 500 ended the period higher than it began, according to senior market strategist Ryan Detrick.

The Dow Jones industrial average gave up 738 points, or 2.8 per cent, to 25,686.

The Dow Jones has dropped by 3.2 per cent to 25,599 points. The pan-European FTSEurofirst 300 index of leading regional shares closed down 1.57 percent.

This time around, strong economic data anxious bond investors, who sent the benchmark yield on Tuesday to 3.261 per cent, the highest since early May 2011.

Tropical Storm Michael, Heading North, Could Become Category 2 Hurricane
Hurricane force winds extend 45 miles outside the center, and tropical storm force winds extend outwards 175 miles. Outer bands from the storm are also expected to bring roughly 100 mm of rain to the Florida Keys through Tuesday.

Le scénario noir des experts internationaux — Réchauffement du climat
Selon le Giec , "il est probable" que le réchauffement atteigne 1,5 °C entre 2030 et 2052 s'il se poursuit à son rythme actuel. A +2°C ce serait 10 cm de plus, soit jusqu'à 10 millions de personnes supplémentaires affectées.

Indonesia says death toll in Sulawesi quake rises past 2,000
The quake and subsequent tsunami have killed at least 2,000 people with thousands more possibly missing, according to Indonesia. There is an ongoing search for victims but the government said it will stop recovery operations on Thursday.

The Standard & Poor's 500 index fell 94 points, or 3.3%, to 2,785 on Wednesday, its biggest one-day loss since February 8.

Big moves in interest rates tend to unsettle investors, and they can also push them to sell stocks and buy bonds instead.

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 United States economic data.

Tom Cahill of Ventura Wealth Management said investors were unnerved by remarks from luxury company LVMH of a crackdown on some goods in China amid the country's bitter dispute with the US. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks. A move of more than two deviations, or 40 basis points now, leads to negative S&P 500 returns, Goldman says.

Oil prices fell more than two percent as US stocks plunged, even though energy traders anxious about shrinking supply from Iran due to US sanctions and kept an eye on Hurricane Michael, which closed almost 40 percent of US Gulf of Mexico output.

Tech is taking its lumps because bond yields have climbed in recent weeks, hovering at a more-than-seven-year high.

The Nasdaq fell 177 points, or 2.3 percent, to 7,560. Brent crude, the worldwide standard, lost 2.2 per cent to US$83.09 a barrel in London.

All 30 Dow stocks were in the red, sending the index below 26,000 points for the first time in a month.

Gold rose 0.2 per cent to $1,193.40 an ounce.

The Australian dollar slipped against major currencies, down to 70.7 U.S. cents, 53.6 British pence, 61.4 Euro cents and 79.5 Japanese yen. The British pound rose to $1.3197 from $1.3146.

Conseillé:



Populaire

American Music Awards - All The Performances: Watch Here!
Please, please educate yourself on the candidates running in your state and vote based on who most closely represents your values. In 2014, the "Shake It Off" and "Look What You Made Me Do" singer received the distinguished Dick Clark Award for Excellence.

Sears hires a bankruptcy expert
The retailer warned last month it may go out of business if the deals proposed by Lampert were not approved. Sears and Kmart had 89,000 employees as of February 3 of this year, according to a company filing.

Putin meets with Nurmagomedov, defends UFC champ's actions during brawl
But in a meeting between the trio on Wednesday, Putin asked Abdulmanap Nurmagomedov "not to punish him too severely" for the brawl.

Le journaliste Jean Lanzy est décédé à Aigues-Mortes — Gard
Le couple était "tombé en amour pour Aigues-Mortes", disait-il, au point de s'y fixer définitivement intra-muros pour sa retraite. Il est par la suite nommé directeur délégué de l'information et, en 1985, directeur délégué aux programmes et à l'information.

McConnell says Kavanaugh fight widens gender gap
And it comes as the president is on a high wave following a series of wins, including Kavanaugh's confirmation. I knew that a long time ago. "Even the reporter who broke the story said it wasn't me or my staff".

La dernière saison du jeu Telltale finalement sauvée — The Walking Dead
En espérant une amélioration des chiffres dans les semaines qui viennent, (re) découvrez la bande-annonce de l'épisode 2. En 2010, le pilote du show avait ainsi comptabilisé 5,35 millions de curieux (voir tableau ci-dessous).

Liverpool's Fabinho enjoying learning Jurgen Klopp's style of play
And we hope that they come back healthy and play these easy competitions, the Premier League, the Champions League and all this.

Billy Joe Saunders Denied A Licence, Title Fight Set To Cancelled
The Matchroom boxing boss said he has "signed a contract" for Namibian Walter Kautondokwa to face American Andrade. They didn't petition the WBO to strip Saunders of its 160-pound championship, either.

Majorca floods: Two Britons reported among five dead amid 'biblical' scenes
Other victims were found in Arta and the coastal town of S'illot, where the overflowed creek reaches the sea. The flooding also affected phone communications, destroyed two bridges and forced the closure of 11 roads.

Safeway Open: Kevin Tway outlasts Brandt Snedeker, Ryan Moore in playoff holes
Kevin Tway hit three consecutive birdies in the play-off to seal his first PGA Tour title at the Safeway Open in California. I was kind of right there, but kind of hanging around. "There was debris flying everywhere".