The Dow tumbles more than 400 points

The Dow tumbles more than 400 points

A global measure of equity prices fell to a 1-year low on Thursday as Wall Street extended its October slide into a sixth session as investors feared an escalating USA trade war with China and risks from a recent climb in interest rates.

US market indexes continued their risk-off selling with all of the major indexes closing with losses.

Stocks retreated Wednesday, with the Dow Jones industrial average losing more than 800 points in a selloff that accelerated in the final minutes of trading.

What will fall hardest?

The losses were widespread, and stocks that have been the biggest winners on the market the last few years, including technology companies and retailers, suffered steep declines. The Nasdaq composite, which has a high concentration of technology stocks, tumbled 316 points, or 4.1 percent, to 7,422.

The Dow Jones industrial average gave up 738 points, or 2.8 per cent, to 25,686.

USA stocks slumped on Wednesday as concerns over rising interest rates and trade tensions caused a sell-off in technology and internet stocks.

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 benchmark Dow index fell 831 points to close at 25,598.74 on Wednesday, wiping out 3.2 percent of its value in the sharpest drop since February. Market indexes in Hong Kong, South Korea, Australia and Southeast Asia also moved lower.

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Nadal also announced on social media that his tennis academy on the island would offer shelter to people affected by the floods. Rafel Gili Sastre, 71, a former municipal mayor, was later found dead at his home, the paper said.

But a recent International Monetary Fund warning on global growth taking a hit from trade disputes has hit confidence in the stock market, as has US Treasury yields at more than 7-year highs, signalling a tightening of capital globally.

At 12:44 p.m., the Nikkei 225 average traded at 22,496.24, down 1,009.80 points, or 4.30 percent, from Wednesday's closing.

Other analysts said they had expected the pullback because the soaring market was due for a correction. The stock fell 16.8 percent to 49 cents.

"Short-term bonds are getting to be a compelling place to hang out", he said.

For stock investors, the recent spike in bond yields may be prompting some uncomfortable deja vu.

Globally, France's CAC 40 dropped 1 per cent and the DAX in Germany lost 0.6 per cent. Britain's FTSE 100 sank 1.3 per cent.

Asian markets were broadly lower on Thursday after Wall Street slumped on a heavy selling of technology and internet stocks.

It is the biggest sell-off in USA markets since February, a negative sentiment also reflected in European markets - with Paris (-2.1pc), Frankfurt (-2.2pc) and London (-1.3pc) finishing deep in the red.

"That suggests the Fed will keep raising rates, and that's taking the wind out of the stocks that have done the most, particularly in the tech sector". It has fallen 7.5 percent in just five days. Heating oil fell 1.2 per cent to $2.39 a gallon.

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