US stocks plunge toward their worst loss in six months

The Dow tumbles more than 400 points

Dow Falls 430 Points as Bond Yields Surge and China Tensions Grow

Dow Industrial Average Futures were down by about 300 points, or 1.2 percent, in pre-market trading, implying a sharply lower opening on Thursday after falling more than 3 percent on Wednesday.

The losses were widespread as bond yields remained high after steep increases last week.

The Dow Jones Industrial Average fell 430 points Wednesday morning, or around 1.6 percent.

The benchmark Dow index fell 831 points to close at 25,598.74 on Wednesday, wiping out 3.2 percent of its value in the sharpest drop since February. Eastern time. It's on track for its fifth straight drop, which hasn't happened since right before the 2016 presidential election. These sectors had been some of the top performers over the past year, almost doubling the performance of the S&P 500.

Microsoft dropped 5.4 percent to $106.16.

Major equity indexes in Europe fell more than 1.0 percent, also pulled down by technology shares, and gold prices inched up as some investors sought refuge in the metal.

Stocks from emerging markets were also hard hit.

Along with tech stocks, the FAANGs " Facebook, Amazon, Apple, Netflix and Alphabet" have led the market rally.

Rising interest rates make bonds more attractive relative to riskier stocks.

"Both companies highlighted rising costs, not only input costs but increasing operating expenses [and] marketing expenses", she said.

Tech stocks and companies that sell non-essentials to consumers have been some of the top performers over the previous year, gaining almost twice as much ground as the S&P 500. Berkshire Hathaway dipped 4.7 per cent to US$213.10 and reinsurer Everest Re slid 5.1 per cent to US$217.73. The Nasdaq Composite closed at 7,422.05 for a loss of -315.97 points or -4.08%. Those rates have been climbing after several encouraging reports on the economy.

Yields on 3-year notes have recently traded just above 3.0 percent, providing long-absent competition for investment returns with equities. It was at just 3.05 per cent early last week and 2.82 per cent in late August.

Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices. That's helped make technology stocks more volatile in the last few months. "As stocks go down, tech goes down more than the stock market".

Meanwhile struggling retailer Sears was in focus as the Wall Street Journal reported that it was preparing to file for bankruptcy. A move of more than two deviations, or 40 basis points now, leads to negative S&P 500 returns, Goldman says. The Japanese yen strengthened 0.53 percent versus the greenback at 112.36.

Benchmark US crude oil fell 2.4 per cent to US$73.17 a barrel in NY.

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.

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