Dow Jones Industrials Sink 800-plus Points

Dow Jones Industrials Sink 800-plus Points

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.

USA stock indexes dived around 1 percent on Wednesday as worries over China and the impact of rising Treasury yields on global growth drove falls in luxury goods companies and chipmakers.

Asian markets tumbled on Thursday, after Wall Street slumped on a heavy selling of technology and internet stocks.

Shares in Facebook, Amazon, Apple, Netflix and Google's parent company Alphabet - the so-called "FAANG" stocks that have driven U.S. markets to all-time highs recently - all fell in NY trading.

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.

"Clearly stocks are spooked by higher rates and maybe some inflation that seems to be creeping in", said Michael Farr, CEO of Farr, Miller & Washington.

President Trump, who's been quick to tout recent record highs in the market as a result of his economic and foreign policy, took this opportunity to criticize the Fed, calling the central bank "loco" for increasing rates.

The S&P 500 shed 1.53% to 2,839.43, on track for its steepest loss since June. And there is still an overhang from the USA trade dispute with China, which accounts for sizeable portions of some tech companies' revenue. In the previous session, the stock jumped 15 per cent on a Globe and Mail report that Altria Group was in talks for acquiring a stake.

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Wednesday's sell-off only adds to what's already been a rough month for US stocks. It has fallen 7.5 percent in just five days.

Other analysts said they had expected the pullback because the soaring market was due for a correction. Over the years, Sears has closed hundreds of stores and sold several famous brands.

The small-cap Russell 2000 index, which is less sensitive than its larger peers to global worries such as trade and yields, was down 1.18 percent.

USA crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09. Natural gas rose 0.6 per cent to $3.28 per 1,000 cubic feet.

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. The Japanese yen strengthened 0.53 percent versus the greenback at 112.36.

In London, the FTSE 100 was down by 1% as hopes of a Brexit deal lifted the pound - weakening the sterling value of earnings for numerous global index's multinational constituents.

Stocks from emerging markets were also hard hit. Investors see many of these countries as being vulnerable to higher USA interest rates, which can pull away investment dollars.

The euro and sterling rose, underpinned by optimism for a Brexit deal, while the USA dollar lost ground against a basket of currencies even as US yields hovered near multiyear peaks.

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