Dow plummets more than 1000 points, its second-worst trading day ever

Javier Howell
February 10, 2018

US President Donald Trump, who has repeatedly praised Wall Street gains during his first year in office, on Wednesday dismissed recent market rout, saying stocks should not be falling amid strong economic news.

Worries about inflation set the market rout in motion last Friday, and many market watchers have been predicting a pullback after the market's relentless march higher over the past year.

The Dow was up 264 points, or 1.1 percent, at 24,122.

The S&P 500 also suffered, plummeting 101 points to finish at 2,581.

The Nasdaq composite lost 212 points, or 3 percent, to 6,838.

Do you think Dow Jones volatility can mirror that of cryptocurrency markets?

Major indexes swung up and down after starting the session 2 per cent lower, underscoring a return of volatility to a market that until recently had been known for the absence of such major shifts.

Thursday's losses were steady, rather than the sharp falls seen over the past few days, however.

Over $5 trillion has been wiped from global stock markets since January 26, according to S&P Dow Jones Indices. Its shares sank $19.03, or 15.5 percent, to $104.

FTSE 100 graph
GOOGLEFTSE 100 price The FTSE 100 in the UK took a battering today

As a result, the biggest losses went to high-dividend companies such as utility and real estate companies, which investors often buy as an alternative to bonds.

US crude fell 1.72 percent to $60.73 per barrel and Brent was last at $64.56, down 1.45 percent on the day.

The market got off to a mixed start on Thursday but has fallen steadily as the morning wore on. South Korea's Kospi had declined 1.5 percent.

Other major US stock indexes also tumbled Monday. The Nasdaq rose 69 points, or 1 percent, to 6,847. It was up as much as 349 in early trading.

Snapchat owner Snap soared 21 per cent after it reported surging growth in users and revenue in its latest quarter.

This is a common trend as the need for cash grows during this period - a time when Chinese companies typically pay bonuses and people also traditionally exchange cash and gifts during the period.

Roomba maker iRobot plunged 24 percent after its earnings fell far short of what investors were expecting.

Earlier on Thursday, the 10-year US Treasury note yield rose as high as 2.884%, nearing Monday's four-year peak of 2.885%, after the Bank of England said interest rates probably needed to rise sooner than previously expected.

The collapse shaved 4.6 percent off the index, which represents a price-weighted average of 30 blue-chip American stocks that are generally the leaders in their industry. South Korea's Kospi, which saw only modest losses on Tuesday, fell back by midday, losing 0.7 percent to 2,435.05.

Other reports by Insurance News

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