Febrero 21, 2018

Dow Jones Plummets Again On Worries About Inflation

10 Febrero 2018, 07:52 | Gervasio Siguenza

European share declines limited after another Wall Street sell-off

Why haven't the markets been halted amid this drop? They haven't fallen enough

The S&P 500 gained 38.5 points, or 1.49 percent, to close at 2,620.

Stocks on Friday began to bounce after the S&P 500 briefly broke below its 200-day moving average, a level seen as technical support. That makes it the worst week for the indexes since January 2016.

The Dow finished up 330 points, or 1.39 percent, at 24,191.

Canada's main stock index fell 274.41 points, or 1.82 per cent, to 14,791,20.

The Nasdaq composite added 97.33 points, or 1.4 percent, to 6,874.49.

Stocks swung dramatically between gains and losses Friday, an appropriate end to a week that featured numerous big point swings.

Track the Dow Jones industrial average at Markets Insider. The S&P 500 and Nasdaq also rallied into positive territory.

AUSTRALIAN shares have again slid in early trade following a fresh plunge on Wall Street overnight, while the Aussie dollar has retreated below the 78 USA cents level.

Other stocks that have struggled this week include 3M, American Express and Exxon Mobil, down more than 10 percent as oil prices continue to slide.

The jitters have been driven by the rapid rise in 10-year Treasury yields. Still, traders are bracing for more market volatility, wondering if the Fed will hike rates more than three times this year, the current target.

"Since the financial crisis, this is the first 10 percent correction in stocks that has not been accompanied by a significant fall in rates".

As we noted Wednesday, however, tech stocks fell more than the broader market and some analysts have pointed to these market leaders - Alphabet (GOOGL), Facebook (FB), Microsoft (MSFT), Amazon (AMZN), and Apple (AAPL) - as potential indicators of markets having not yet worked out all the stress inflicted in the 8% S&P 500 decline that happened in just a handful of trading days.

Monday's drop of 1,175 points was the Dow's worst day ever (in points terms), far exceeding the index's previous record drop of 777, set on 29 September, 2008. It was up as much as 349 in early trading. The Nasdaq was down 125 points, or 1.8 percent, to 6,651.

Rising U.S. debt issuance is expected to weigh on bond prices in coming months. On the week, the dollar index gained 1.41 percent for its best week in nearly 15 months.

The April gold contract was down US$3.30 to US$1,315.70 an ounce and the March copper contract was down five cents to US$3.03 a pound.

The benchmark FTSE 100 share index fell 35.51 points, or 0.5%, to 7,135.18.

Crude oil prices have also retreated during the market turmoil. The yield on the 10-year Treasury note was unchanged at 2.83 percent.

The selling on Wall Street spread to Asia overnight as stocks dropped in China and Japan.

Also contributing to the big swings this week was the blow-up of exchange-traded products that were built to profit if markets remained calm. Tokyo's Nikkei 225 lost 2.3 percent and Hong Kong's Hang Seng gave up 3.1 percent.

Emerging market stocks lost 1.74 percent.

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