prensaestatal.com
prensaestatal.com Febrero 19, 2018


USA stocks enter correction as rate-hike fears return

09 Febrero 2018, 12:37 | Dolorita Barahona

AP News in Brief at 6:04 am EST

The Dow Jones Industrial Average sank as much as 1,500 points before recovering to close just down 1,175. The S&P 500 Index dropped more than 4

The Dow and the S&P 500 are both 10 per cent below the record highs the indexes set just two weeks ago, putting them in what is known on Wall Street as a "correction".

Analysts have said the swings in the U.S. markets in part reflect big investors moving to sell stocks and put money in other assets, such as bonds, which benefit from higher interest rates.

However, over in the U.S., gains were entirely wiped out on Thursday, with the Dow shedding 4.2pc, the S&P 500 3.8pc and Nasdaq 4pc lower after a volatile late trading session. By closing at 23,860 points, the Dow Jones industrial average was set back to its level on November 17, 2017, and officially corrected.

The S&P 500 dropped 100.6 points or 3.75% to 2,581, while the Nasdaq slid 274.8 points or 3.9% to 6,777.1.

The Cboe Volatility Index was weaker on Thursday, near 27.41, which is still more than twice as high as its recent, unprecedented lows, having suffered its biggest-ever one-day spike on Monday.

"In addition, Wall Street is now at the same level from November 2017".

Analysts blamed higher treasury bond yields for Thursday's poor performance, also saying the market has become too expensive and was due for correction.

The technological Nasdaq Composite recorded a decline of 0.9% after stocks of large technology companies retreated.

On Monday, the Dow had plunged by almost 1,200 points or 4.6%, triggering losses in Asia and Europe. They also experienced corrections.

Jim Citro, vice president of investments and branch manager at Stifel in Quincy, said his advice to nervous clients who called him this week about the wild swings in the stock market was simple.

S&P 500 index futures fell 0.4% vs. fair value.

"There is a lot of concern in the rising yield in the 10-year Treasury note", said David Kass, professor of finance at the University of Maryland.

Activity was similarly volatile on the bond market.

The Dow finished with a decline of 1,033 points, the second-worst point drop in history, eclipsed only by Monday's 1,175-point nosedive.

USA stocks fell to two-month lows after a nine-day swoon wiped out nearly 9 percent in the S&P 500.

Also worrying markets was a government budget proposal United States lawmakers in Congress have announced, which raises spending caps and could fan inflation. Historically, the market goes through a correction of 10% or more every two years.

"It means that there are more investors with a negative view on the market in the long term", said Oh Hyun-seok, a market analyst at Samsung Securities.

Few big companies emerged unscathed, with Dow giants Boeing and Caterpillar losing around five percent, around the same range as tech titans Amazon and Facebook. A pickup in inflation could prompt the Federal Reserve to raise interest rates at a faster pace, which would act as a brake on the economy.

The Australian dollar fell by 1 per cent to 78.2 USA cents. The last fall of that size came in August 2011 when investors were fretting over Europe's debt crisis and the debt ceiling impasse in Washington that prompted a US credit rating downgrade.

Have You Added This Stock To Your Watch-List?



Otras noticias

Tendencias Ahora

Asian shares tumble after Dow has worst day since 2011
And that should lift stocks, making them a far better investment even if bond yields do drift above 3% over the next year or two. The Dow closed at 24,912, a 2.33 percent gain, while the S&P 500 finished up 46.27 points to 2,694, a 1.75 percent increase.

Olivier Giroud: 'Only club I wanted to sign for was Chelsea'
He joined Arsenal from French side Montpellier in 2012 and his goal tally has hit double figures in each of his last five seasons. In fact, Giroud's total of 17 substitute goals is almost twice as high as anyone else's. "They (Swansea) were more decisive".

Federal government will intervene if needed on Trans Mountain: Carr
Alberta has already responded by ditching talks about importing B.C. electricity and cutting off B.C. wine imports. Horgan said Wednesday it is not in anyone's interests to fuel the spat between the two provinces.

Winter Olympics: How to watch the opening ceremony and stream the Games
The IOC had been taking nothing for granted on Friday following a separate CAS ruling earlier this month which saw it defeated. Russian Federation was banned from the Games as punishment for state-sponsored doping on home snow in Sochi four years ago.

Memo unveils alleged abuses in Federal Bureau of Investigation
It turns out, the chairman made minor grammatical edits and a few substantive changes that either the or the Democrats requested. The Nunes memo revealed information that should trouble every single American, while raising several new lines of inquiry.

White House Under Fire Over Aide Accused Of Serious Domestic Abuse
She claimed that shortly after their first anniversary Porter pulled her all naked from the shower and then verbally abused her. The bar is set higher for business leaders, sports figures, teachers, members of the military and even (recently) entertainers.

Doug Pederson makes one-handed catch on beer at Eagles parade
I can't wait to go down Broad, go to the art museum, and see everything. You can't begin to imagine how long fans have dreamed of that moment.

Winter Olympics 2018: Everything you need to know
Woo Won-shik, the party's floor leader, said during a party meeting just hours before the Olympics kick off. The Opening Ceremonies are scheduled for Friday and expected to include more than 2,000 performers.

Senate goes into recess, ensuring shutdown
Pence is in South Korea, where he is leading the USA delegation to the opening ceremonies of the Winter Olympics. The agreement would also provide $140 billion in war funding and $20 billion more for other emergency spending.

Trump Tried to Fire Mueller but Top White House Lawyer Refused — NYT
And indeed, McGahn is a seasoned Washington veteran who spent many years in Republican politics before joining the Trump campaign. That echoed a September post from CEO Mark Zuckerberg, who said the company had shared what it had found with Meuller's probe.