USA stocks swing wildly as Wall Street volatility persists, global stocks drop

07 February, 2018, 02:01 | Author: Bert Pena
  • The final numbers of the day are shown above the floor of the New York Stock Exchange in New York US

The Dow Jones Industrial Average opened Tuesday 520 points lower, a day after the index suffered the biggest ever loss by points in a single day.

On its way there, the Dow took several harrowing turns during the day, opening with a plunge of 567 points - coincidentally, the exact same amount it wound up gaining at the closing bell.

And the rout in US markets continued to ripple around the globe. European indexes were down about 2 percent, while Japan's Nikkei lost 4.7 percent.

"You continue to have investors re-rating stocks based on higher inflation and higher interest rate expectations", said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

Analysts also point to the fact that corporate earnings for S&P 500 companies remain strong and are seen rising by 18.4% in 2018, up from 12.4% previous year, according to data from earnings-tracker Thomson Reuters. The most recent one ended in February 2016, according to S&P Dow Jones Indices.

They may have sought to take profits or to rebalance portfolios, moving some money out of the stock market, regardless of stocks.

The Dow has now pulled back about 10 percent since reaching a record high of 26,616 on January 26, 2018 - putting it in correction territory.

But Benjamin Reitzes of BMO Capital Markets highlighted in a note that while the points decline was a record, "on a percentage basis, it's the 28th largest drop since 1947".

Emerging market stocks lost 2.51 percent.

Turkey suffers losses in northern Syria
The latest clashes brought to 14 the number of Turkish troops killed so far in the operation, AFP reported . In a statement, the Turkish General Staff said 12 terrorists had been neutralized in overnight airstrikes.

Spin bowlers send South Africa crashing
Overall, the match turns out to be the biggest disaster for the South African Team and they all out in the score of 118 runs. David Miller was out for a duck, undone by a turner from Kuldeep to be caught at slip later the same over.

Shujaa to face Hamilton champs Fiji in Vegas
Both sides scored two tries in the second half, but it was Samoa who waked away with a 22-17 victory. Fiji have beaten South Africa 24-17 to win the Cup final in Hamilton .

"Seemingly the only hope for the markets at the moment is that investors suddenly decide that the sell-off has been a bit overdone", said Connor Campbell, a financial analyst at Spreadex.

The Standard & Poor's 500 index was down 8 points, or 0.3 percent, at 2,639. Exxon Mobil (XOM) fell 3.5 percent. Investors are anxious about evidence of rising inflation in the U.S. Increased inflation might push the Federal Reserve to raise interest rates more quickly, which could slow down economic growth by making it make it more expensive for people and businesses to borrow money.

Two clients were anxious about how long and how deep the market would fall and the other asked whether he should postpone plans to buy commercial real estate.

The constant rise in US share values since 2009 has been fuelled by the extraordinary easy-money policies of the world's major central banks, and most recently by President Donald Trump's tax cuts, promises of corporate deregulation and infrastructure spending.

The original trigger for the equities sell-off was a sharp rise in US bond yields late last week after data showed USA wages increasing at the fastest pace since 2009. The yields on 10-year Treasury bills stood at 2.779 percent, below recent highs, and corporate bond rates held steady Monday, suggesting that a stampede out of stocks is not imminent. They stood at 2.75 percent on Tuesday.

"We have an environment where interest rates are rising". Nasdaq 100 e-minis NQc1 were down 25.75 points, or 0.4 percent, on volume of 207,522 contracts.

As of late Monday afternoon, the Dow Jones Industrial Average was down nearly 3 percent.

Commodities remained gloomy, with oil and industrial metals all falling as the year's stellar start for risk assets rapidly soured.

Gold declined 80 cents to $1,336.50 an ounce.

Recommended:



Popular

Are England destined for third straight Six Nations title?
Schmidt explained: "We felt he went really well against Montpellier and we are looking forward to seeing what he will deliver".

Magnitude 6.0 quake rocks Taipei, east coast
A 6.4 natural disaster struck Taiwan on Tuesday and collapsed a hotel in Hualien City on the island nation's east coast. The quake was felt across Taiwan, and some buildings and roads in Hualien, in eastern Taiwan, were damaged.

Ship Captain: Robert Wagner Drank Whiskey Instead Of Looking For Natalie Wood
Investigators at the time believed her death was suspicious - her body had bruises - but ultimately ruled it as accidental. The truth is important and this news isn't a minor thing - I don't have to say how important this is. "Mr.

Miguna declines to take plea at Kajiado Court
The government ignored court orders to restore transmission for the stations and to release opposition activist Miguna Miguna. They also be recording a statement on why they attended Raila's "swearing-in" held at Uhuru Park on Tuesday, January 30.

Here's Every New PS4 5.50 Update Feature Explained
This new feature will allow family managers and adults set as guardians to control the playtime of child family members. The second tab, PS Plus , only lists games you've acquired through the monthly PlayStation Plus offerings.

Bitcoin Price Falls Below $7K as Crypto Selloff Continues
According to data from cryptocurrency tracker Coinmarketcap , the Bitcoin price is now hovering around $6,100. Investors seeking to trade Bitcoin using USA dollars directly can do so using Gemini, GDAX or Coinbase .

Qualcomm shares fall as reports say Apple may scrap its chips
Apple initially agreed, and even extended that contract, but in 2016 it balked and began mixing Qualcomm and Intel parts. After losing the iPhone business, Qualcomm will be more aggressive in securing orders from Chinese smartphone vendors.

S.Africa's Zuma faces new no-confidence vote
Opposition parties have vowed to block Thursday's opening if parliament's presiding officers refuse their demand to postpone the session until MPs hold impeachment proceedings.

Zverev beats Kyrgios to help Germany advance in Davis Cup
Australia's Matt Ebden and John Peers are scheduled to play doubles on Saturday against Tim Puetz and Peter Gojowczyk. Hewitt claimed Kyrgios remained a future doubles option for Australia - but admitted it was easier said than done.

Equities in green ahead of Budget 2018-19, Sensex at 36k
The 30-scrip Sensitive Index (Sensex), was trading 157.21 points or 0.44 per cent higher soon after opening. The BSE Sensex was down by over 500 points at 10:55 am on Friday while NSE was 153 points down at 10,863.