USA stocks fight to pick up any ground

Adjust Comment Print

Germany's DAX declined 2.6 percent.

In New York, the Dow was down 1,032.89 points, or 4.15 per cent, to 23,860.46, and the S&P 500 index was down 100.66 points, or 3.75 per cent, to 2,581.00.

By closing at 23,860 points, the Dow Jones industrial average was set back to its level on November 17, 2017, and officially corrected.

But the weeklong rout marks a stark turnabout in investors' mood from just two weeks ago, when indexes set their latest record highs.

The steep drops Friday and Monday wiped out the gains the Dow and S&P 500 had made since the beginning of the year. Higher interest rates, meanwhile, give central banks more leeway to stimulate the economy; should it fall into a recession, banks can trim rates again.

The Dow moved almost 500 points during trading Wednesday before closing down 19 points, or 0.08 percent, at 24,893. The Nasdaq Composite was down 274 points, or 3.9%, at 6,777.

USA stocks went on another bumpy ride on Wall Street, dropping sharply in early trading before recovering their losses by lunch time. Also, the increasing prices of commodities, inflation, increasing wage rates, and rising bond yields have surprised the investors all over the world.

The market declines, which spread globally, underscored the challenges he and other bankers face - to make decisions that sustain the growth of the economy without alarming investors. The Dow edged 0.1 percent lower to 24,893.35.

And the Russell 2000 index of smaller-company stocks dropped 44.18 points, or 2.9 per cent, to 1,463.79.

Hitting those support levels would represent an 11% correction for the S&P and a 15% selloff for the Dow from their January 26 all-time highs.

Australia closed up 0.7 percent.

On Monday, the Dow saw a record-setting drop, which, in turn, led to a Tuesday sell-off that one analyst called "genuine carnage".

In Asia, Japanese and Korean benchmarks recouped losses from the day before in early Wednesday trading, mirroring a similar "correction" rally on Wall Street. The Standard & Poor's Index lost 73 points or 2.7 percent to a level of 2,686 which is on track for the biggest loss since June of 2016. Employers are hiring at a healthy pace, with unemployment at a 17-year low of 4.1 percent.

Some of the biggest casualties of yesterday's stock plummet include banks, energy companies, and industrial firms which took the biggest losses. Microsoft lost 2.3 percent.

By midday it was up 30 points, or 0.2 percent, at 24,395. It fell 76 cents, or 1.2 percent, to close at $63.39 a barrel in New York Tuesday. The Nasdaq composite was little changed at 6,968.

The closing numbers are displayed after the closing bell of the Dow Industrial Average at the New York Stock Exchange on Wall Street on February 8, 2018 in New York.

The market got off to a mixed start on Thursday but has fallen steadily as the morning wore on. The dollar index last rose 0.13%, with the euro up 0.06% to $1.2384.

The losses, which began last Friday, put the benchmark Standard & Poor's 500 index nearly 8 percent below the record high it set two weeks ago.

Comments