Wall Street plunges again following another day of volatile trading
- Author: Zachary Reyes Feb 09, 2018,
Feb 09, 2018, 21:06
The recent selloff, sparked by last Friday's jump in Treasury yields, sent the VIX index, Wall Street's "fear gauge", sharply higher. "As it approaches 3 percent, concerns about inflation and competition for stocks by fixed income securities are increasing".
West Texas Intermediate crude declined 2.2 percent to $60.41 a barrel. Employers are hiring at a healthy pace, with unemployment at a 17-year low of 4.1 percent. South Korea's Kospi had declined 1.5 percent. USA stocks have been in a bull market for almost nine years.
In the energy market, oil prices fell 2.0 percent.
The Dow Jones is on track to suffer the biggest weekly decline it has seen since October 2008, after falling over 1,000 points in yesterday's trading session.
At 0700 AEDT on Friday, the share price futures index was down 82 points, or 1.41 per cent, at 5,730.
In small-caps, the Russell 2000 Index closed at 1,507.97 for a gain of 0.80 points or 0.05%. The Nasdaq shed 274.82 points, or 3.90, to close at 6,777.16. The Nasdaq composite was up 115 at 7,083. Wynn Resorts and Ball were among the biggest gainers in the S&P, countering a drop in Chipotle Mexican Grill.
The gains across the pond, however, did not spread to Asian markets, with the majority posting losses. Since then, the Dow and the Standard & Poor's 500 have fallen 10 percent, Wall Street's traditional definition of a correction.
The double-digit percentage stock decline has occurred even though Wall Street stresses that the health of the economy, labor market and US businesses remain strong. "I don't know if it's over, but a market range may be established". "It is now up 187 points so we are back up today".
That said, don't think Thursday will be the last day of volatility. "We're monitoring the stock markets, they are functioning very well and we continue to believe in the long-term impact of the stock markets", Mnuchin said.
U.S. stocks have tumbled again, deepening the losses felt earlier this week.
The Dow Jones industrials are down 800 points, extending the market's losses.
The euro fell 0.2 percent to $1.2244.
Even after Tuesday's gain, the S&P 500 is still down 6.2 percent from the recent record high it set on January 26.
Tuesday's market is marked by a return of volatility to the equities market that have been absent for quite some time.
USA stocks swooned Friday and Monday as investors anxious that accelerating inflation and higher interest rates could derail the market's record-setting rally.
In Europe, Germany's DAX fell 2.3 percent and the CAC 40 in France lost 2.3 percent. The Dow was up over 26 percent from January 2017 to January 2018 - too good, analysts warned.
The market opened little changed on Thursday but started to fall in early trading and extended its losses throughout the morning. If rates rise quickly, that argument becomes much less persuasive.
All major sectors were down Thursday, with technology, real estate and financials leading the plunge, signaling investor unease around interest rates and the prospect of higher inflation.
The Dow was down 501 points, or 2 percent, to 24,397.