Dow Jones industrials sink 700 points as bond yields rise

Ivan Schwartz
October 11, 2018

But they are also possibly leading indicators of the end of a historic bull market, in which stock-market indexes continue upward quarter after quarter.

Nasdaq losers also include big names like Netflix, Nvidia, Adobe and Amazon - which also dropped somewhat similar to their cousins in the crypto market. "This meltdown isn't just a mild case of the sniffles suggesting the latest sneeze from the USA equity market could morph into a global markets pandemic".

Apple gave up 4.6 percent to $216.36 and Microsoft dropped 5.4 percent to $106.16.

Luxury retailers tumbled. Tiffany plunged 10.2 percent to $110.38 and Ralph Lauren fell 8.4 percent to $116.96.

The spread of red ink overseas, though, suggested more turbulence ahead for Wall Street, where a growing list of concerns is sowing unrest for a market that has been on a historic run on the back of strong earnings.

The increase in yields from these bonds - which are parcels of U.S. government debt - can hurt stocks since they will provide competition for investors' cash.

Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said the stocks have become more volatile in the last few months because investors have concerns about their future profitability.

The rise in U.S. Treasury yields has been bolstered by good U.S. economic data that has reinforced expectations of multiple rate hikes over the next 12 months by the Federal Reserve.

"Amazon recently announced they were increasing wages, Facebook is spending a ton on security", she said.

Enbridge restores smaller natural gas pipeline in BC, after main line blast
In Greater Victoria on Wednesday afternoon, the price for regular unleaded at many stations rose to $1.539 a litre from $1.399. FortisBC has backup supplies of natural gas in the form of liquefied natural gas at its Tilbury Island terminal.

Selena Gomez enters treatment facility after suffering an 'emotional breakdown'
Singer Selena Gomez is said to be receiving treatment at a mental health facility after a rough couple of weeks. According to TMZ she tried to leave the hospital but doctors insisted she couldn't in her condition.

Sears could finally be nearing bankruptcy after years of decline
Lampert has been willing to pour additional cash into the company in return for debt backed by real estate or other hard assets. The company has a total of about $5.6 billion in outstanding debt and is down to about 820 Sears and Kmart stores.

The sharp decline in stocks was led by a fall in shares across several of the world's largest technology giants.

All top ten cryptocurrencies and stocks from Dow Jones, S&P 500 and Nasdaq, are in the red on Thursday. The Kospi in South Korea fell 3.6 percent to 2,148.97.

The Dow Jones Industrial Average fell 198.28 points, or 0.77 per cent, to 25,400.46.

"The S&P 500 is looking very weak and negative and that is putting fear into investors", said Michael Matousek, head trader at U.S. Global Investors.

Sears Holdings plunged 32 percent after the Wall Street Journal said the debt-laden retailer was preparing for a possible bankruptcy. It was more than $40 five years ago. Brent crude, the worldwide standard, lost 2.2 per cent to $83.09 a barrel in London.

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

Among the tech sector's worst performers in Europe, Austrian chipmaker AMS fell 5.9 percent and STMicroelectronics closed down 5.8 percent. In Asia, Tokyo's Nikkei 225 gave up 3.9 per cent and Hong Kong's Hang Seng index shed 3.5 per cent.

All 11 sectors in the S&P 500 were lower, with banks and energy stocks the hardest hit.

The dollar index fell 0.17 percent, with the euro up 0.25 percent to $1.1518. Brazil's Bovespa lost 2.5 per cent and the Merval in Argentina sank 2.2 per cent. The Japanese yen strengthened 0.53 percent versus the greenback at 112.36.

Other reports by GizPress

Discuss This Article