• News
  • Money

Dow Jones industrials plunge 1000 points, bringing the index down 10 percent

Dow Jones industrials plunge 1000 points, bringing the index down 10 percent

The Dow Jones industrial average plunged more than 1,000 points as a weeklong market swoon continued.

USA stock markets fell sharply Thursday, with the Dow Jones industrial average tumbling 1,033 points, or 4 percent, to 23,860.

The Dow Jones Industrial Average closed down 1,032 points (or 4.15%), meaning it is 10% down from the record high it reached two weeks ago.

The S&P 500 last confirmed a correction in January 2016, when it fell 13.3 percent amid concerns about a slump in oil prices.

While those concerns have been the catalyst for recent selling, the retreat in equities had been long awaited by investors as the market climbed nearly steadily to record highs earlier this year. The Nasdaq was down 125 points, or 1.8 percent, to 6,651. Other markets lost ground, with the Hong Kong Hang Seng index down 3.1 per cent and Japan's Nikkei 225 index recording a loss of 2.3 per cent.

Even the most bullish of market strategists will say a correction is ultimately healthy for a market because it removes some of the froth and speculation. Asian markets fell more sharply. Brent crude, the global standard for oil prices, gave up 70 cents, or 1.1 percent, to $64.81 per barrel in London. It's still up 15 percent over the past year.

The bottom of this recent slide remained elusive for investors, who have been whipsawed this week by huge swings that have shaken a market that had only climbed steadily for months. The yield on the 10-year note was as low as 2.04 per cent as recently as September.

Analysts at Barclays, Bank of America and JP Morgan estimate that volatility-targeting traders will sell roughly $200 billion of equities this week, leading to more pressures on markets.

But, while pricier valuations are one factor behind the sell-off, a bigger driver is the move by the US Federal Reserve to tighten monetary policy by raising interest rates in the face of rising wages and fears of an uplift in inflation.

Stock trading turned volatile over the last several days, breaking an unusually long period of calm. Many market watchers have been predicting a pullback, saying stock prices have become too expensive relative to company earnings.

Many investors justified that by pointing out that interest rates were low and few alternatives looked like better investments.

Rising rates are viewed as a headwind for stocks. Why? The yield on the 10-year Treasury note rose to 2.83 percent from 2.84 percent.

In currency markets, the dollar edged up to 108.87 yen from Thursday's 108.84 yen. GrubHub jumped $17.85, or 25.5 per cent, to $87.76 while Yum Brands dipped $1.94, or 2.4 per cent, to $78.19.

After a sharp loss Wednesday, benchmark USA crude lost 76 cents, or 1.2 percent, to $61.03 a barrel in NY.

In Europe, Germany's DAX fell 1.2 percent, while France's CAC 40 lost 1.4 percent.

Leave Your Comment

Leave Your Comment


Latest News

  • First 'Venom' teaser trailer shows Tom Hardy as Eddie Brock

    First 'Venom' teaser trailer shows Tom Hardy as Eddie Brock

    Venom is distributed in the Philippines by Columbia Pictures, local office of Sony Pictures Releasing International. Carlton Drake, Jenny Slate as Dora Skirth, Scott Haze as Roland Treece and Woody Harrelson in an undisclosed role.
    Eddie Jones Attempts To Rattle Rhys Patchell Ahead Of Six Nations Clash

    Eddie Jones Attempts To Rattle Rhys Patchell Ahead Of Six Nations Clash

    He won't let Alun Wyn Jones referee the game". "They had nothing to lose, and they played with a great freedom [last weekend]". When Wales head for Twickenham the odds on a passive, entirely silent pre-match buildup usually range between slim and none.
    Bangladesh Opposition Leader Khaleda Zia awarded 5 years imprisonment

    Bangladesh Opposition Leader Khaleda Zia awarded 5 years imprisonment

    The renewed tension between them raises the spectre of a long, destabilising spell of unrest for Bangladesh and its economy. Last month prosecutors sought the death penalty over his alleged role in a deadly 2004 grenade attack that injured Hasina.
  • Boy with Down's Syndrome becomes face of United States  baby food giant Gerber

    Boy with Down's Syndrome becomes face of United States baby food giant Gerber

    His parents entered him in Gerber's Spokesbaby contest after a relative pointed out an ad looking for submissions. Since 2010, the company has held a contest to choose a baby to be the face of the brand for the year.
    Coutinho scores as Barcelona reaches 5th straight Copa final

    Coutinho scores as Barcelona reaches 5th straight Copa final

    Suarez also set up the second goal, finding Rakitic for an easy goal from inside the area after a breakaway in the 82nd minute. Philippe Coutinho has finally got on the scoresheet for Barcelona following his £142 million move from Liverpool.
    ACA exchange enrollment dropped by less-than-expected 3.7%

    ACA exchange enrollment dropped by less-than-expected 3.7%

    Despite their upbeat tone about this year's enrollment, directors of several state marketplaces warned that 2019 looks grim. AP's count shows that states running their own marketplaces mostly outperformed the federal HealthCare.gov.
  • How Apple's HomePod compares to the competition

    How Apple's HomePod compares to the competition

    That's because unlike Sonos products, the Homepod only natively integrates with Apple Music, and no third-party music service. More than 16% of iPhone users were strongly compelled to purchase an Echo device over a HomePod.
    DNA Analysis Finds Britons Were Black 10000 Years Ago

    DNA Analysis Finds Britons Were Black 10000 Years Ago

    Since then, scientists have worked hard to predict what he might look like, all the while reconstructing " Cheddar Man ". He had a slim, nearly feminine pelvis, and he was found alone, which is unusual for that time, Booth said.
    Boy in vending machine

    Boy in vending machine

    Mason's story has a happy ending though. "Kid might have a prosperous future as a contortionist or an escape artist", said one. Mason sat in the machine on a bed of stuffed toys, calmly watching firefighters work to free him.
  • Egyptian police foil terrorist attack, kill three

    Egyptian police foil terrorist attack, kill three

    The navy was boosting security at maritime borders "to cut off the influx of terrorists", he added. IS attacks have killed hundreds of soldiers and police and has also included civilian targets.
    Magnitude 6.4 quake strikes northeast Taiwan, hotel collapses

    Magnitude 6.4 quake strikes northeast Taiwan, hotel collapses

    There were grave concerns for the badly leaning Yun Tsui residential building, which also housed a restaurant, shops and a hostel. Many people remain stuck in the bottom two floors. "We've never had anything like this; we've never had a building topple over".
    Smallest partner approves deal on new German government

    Smallest partner approves deal on new German government

    Schulz's defenders emphasise commitments on welfare spending, housing and pensions, and worker-friendly labour law reforms. The political right's media has blasted the deal, though, which could earn it points on the left.
  • Omarosa Breaks Down In 'Big Brother' House About Trump: 'It's Bad'

    Omarosa Breaks Down In 'Big Brother' House About Trump: 'It's Bad'

    Omarosa had been fired from "The Apprentice " 3 times prior. and that "this would make the 4th time we let her go". She has no contact now". "I felt like I was serving my country, not serving him.it was always about the country".
    Disney Announces ESPN Plus: Is It Too Little Too Late?

    Disney Announces ESPN Plus: Is It Too Little Too Late?

    It has agreed to pay $52bn to buy film, TV and global assets from Rupert Murdoch's Twenty-First Century Fox. The news came in addition to the big announcement that Game of Thrones showrunners David Benioff and D.B.
    Black Panther's Rotten Tomatoes score is a ideal  100

    Black Panther's Rotten Tomatoes score is a ideal 100

    She goes out into the world to places like Korea. "They have a history but she is a reliable ear for him". Only a true visit to Wakanda will tell, which can only happen when the film comes out on February 16.
  • In Breakthrough, Scientists Grow Human Eggs to Maturity

    In Breakthrough, Scientists Grow Human Eggs to Maturity

    According to experts, this is an exciting breakthrough but much work is needed before it could be used clinically. The final stage of maturity is necessary for fertilization, and before now has never been reached in a lab.
    Arsenal could rival Chelsea for Luis Enrique

    Arsenal could rival Chelsea for Luis Enrique

    The ex-Bayern Munich club enjoyed a strong debut season for the Blues after winning the league, much like compatriot Conte had. But Chelsea don't care, they will move on and they know they can bring another manager in who will be just as successful.
    Syria says rare USA  strike an effort 'to support terrorism'

    Syria says rare USA strike an effort 'to support terrorism'

    The Syrian government accused the United States of "aggression" in launching the strikes, which it said killed "scores" of people. The Russian officials offered assurances that they would not engage the coalition forces in the area, Veale said .

Breaking News



Recommended

5 keys to Team USA men's hockey winning Olympic Gold

But I think we'll be more ready, ready to compete as much as necessary". "The only games that matter are the ones that lie ahead". Burke said the stories behind the players who are seizing the moment to play in the Olympics will also be a draw to fans.

IPhone Secret Code Revealed In 'Biggest Leak In History'

It starts its process and verifies that the kernel is properly signed by Apple , at which point it executes the bootup process. The development is extremely serious, as iBoot is a critical component of the iPad and iPhone's operating system.

George Bush: 'pretty clear evidence Russian Federation meddled' in United States election

In an address in NY a year ago , he said: "The Russian government has made a project of turning Americans against each other". He added: "It's problematic that a foreign nation is involved in our election system.

Amazon launches grocery delivery from Whole Foods in Virginia Beach

In contrast, Whole Foods orders will be filled by pickers who will actually go down the aisles of nearby Whole Food stores. Amazon plans to offer the service more broadly in the future. "We're going to have a huge expansion ahead", said Landry.

Mahrez criticised: Should Arsenal's Wenger defend him if Leicester is at fault?

My preoccupation is about my available players and to keep them in a positive attitude and to continue this good work. He was Player of the Year that season, two years after joining the club from Le Harve for just £320,000.

South Africa's Zuma holds talks with likely successor as exit looms

Zuma's presidency has been dominated by an economic slowdown, record unemployment and allegations of corruption. The Democratic Alliance could not immediately confirm whether it would participate in the planned march.

Sensex Jumps 330 Points; Nifty Ends At 10576

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed as US bond yields crept up towards four-year highs. The country's largest carmaker today launched the all-new version of its popular hatchback Swift.

Kylie Jenner's baby Stormi is already a fire meme

There was plenty of romance and couple-time in the video , considering they have supposedly cooled off. The clip chronicles Jenner's pregnancy, and includes reactions from her friends and family.

Eastern Carolina school superintendent, family on derailed Amtrak train

Many passengers were asleep with the train began shaking violently and then slammed to a halt, passenger Derek Pettaway told CBS. Amtrak officials gathered up luggage and other belongings and within hours put passengers aboard buses to their destinations.

Dem lawmakers introduce bills to block funds for proposed military parade

A Pentagon spokesman, Charlie Summers, says Pentagon officials are aware of the request and are "looking at options". In her brief comment on Trump's order to the Pentagon, Sanders did not elaborate on what sort of event he envisions.