U.S. Stocks Fall Sharply, Tech Sector Leads Declines

11 October, 2018, 05:27 | Author: Regina Silva

Tech-related stocks were the biggest decliners, the sector shedding 4.0 per cent following an overnight USA session in which tech was badly hit, but the heavyweight financial and materials sectors were also deep underwater.

At the closing bell, the Dow Jones Industrial Average had lost 3.1% or 830 points to finish at 25,613.35, in the biggest fall since February.

"It's a risk-off environment as investors are focusing on spiking yields and taking profits off the table as they are concerned about whether the bull market is actually coming to an end", said Ryan Nauman, market strategist at Informa Financial Intelligence. The move particularly affects high-growth tech companies which have been a source of huge returns in recent months.

Once-highflying tech has led markets lower as yields rise, with the 10-year Treasury note's yield reaching its highest point in more than a decade yesterday. Concerns about consumer spending have also led to jitters about United States companies as they prepare to unveil results for the third quarter of the year over the coming weeks. It's fallen 6.3 per cent over the last five days.

Adams said those worries are affecting technology and consumer-focused companies as well even though companies such as Alphabet, Amazon and Facebook have long had very high profit margins.

AMD (NASDAQ:AMD) suffered an especially brutal day today with a drop of over 8 percent.

The S&P/NZX 50 index declined 19.16 points, or 0.2 per cent, to 9050.82.

The biggest driver for the market over the past week has been interest rates, which began spurting higher following several encouraging reports on the economy. She said they also fear that company profit margins will be squeezed by rising costs, including the price of oil.

Insurance companies dropped as Hurricane Michael continued to gather strength and came ashore in Florida bringing winds of up to 155 miles per hour.

Japan overtakes Singapore as world's most powerful passport
The UAE, meanwhile, is now the strongest in the Middle East, jumping from 62nd place in 2006 to 21st in the 2018 index. "The total score for each passport is equal to the number of destinations for which no visa is required".


Donald Trump: Sex assault claims against Brett Kavanaugh 'a hoax'
Fifty-nine percent of Republicans, 66 percent of Democrats and 71 percent of others agreed that the Senate handled it poorly. The process was marred accusations of sexual assault and misconduct dredged up weeks before senators cast their votes.


Alex Jones is heading to Australia with Prince Harry and Meghan Markle
Markle has been vocal about her thoughts on the royal family and her sister, who she has not spoken to in years. As much as she'd like Meghan "to do the right thing", Samantha has placed "the ball in my sister's court".


Every S&P 500 sector fell heavily, with big-name technology stocks like Facebook and Apple among the biggest drags on the United States market.

For example, a yield rise in a month of one standard deviation or less, which would be 20 basis points now, is manageable for stocks, Goldman said in a note last week.

SEARED: Sears Holdings nosedived after the Wall Street Journal reported that the struggling retailer hired an advisory firm to prepare a bankruptcy filing that could come within days.

Sears has closed hundreds of stores and sold several famous brands or put them on the block as it sees more customers abandon its stores.

Although that's largely because the United States economy is so strong, the spike in rates for the benchmark USA 10-Year Treasury has investors wondering if the near-decade-old bull market may finally be ending. The Labor Department said its index of producer prices has climbed 2.6 percent over the last 12 months, the smallest increase since January. The current benchmark interest rate is 2 to 2.25 percent. The energy sector was close behind with a 2.9 percent loss, as oil extraction in the Gulf of Mexico shutting down due to the hurricane.

There were, however, slight lifts for Japan's Nikkei, which added 0.2 per cent, and Hong Kong's Hang Seng, which gained 0.2 per cent.

Stocks from emerging markets were also hard hit.

Rising interest rates make bonds more attractive relative to riskier stocks. Brazil's Bovespa lost 2.5 percent and the Merval in Argentina sank 2.2 percent.

Recommended:



Popular

Tway clinches first PGA Tour victory in playoff in Napa
Tway then carded his third birdie in a row to secure his maiden PGA Tour victory. The title was decided at the 10th, Tway carding a three on the par-4 for the win.

Tropical Storm Michael could hit Florida Gulf Coast as Category 2 hurricane
The latest track shows a weakening Michael moving either directly through, or at least near central Georgia as a tropical storm . The forecast indicates Michael may be a Category 3 hurricane - with winds from 111 to 129 miles per hour - when it strikes.

Jupiter’s Europa might be a spiky, unsafe place to land a ship
The theory explains how the sun's rays can be so strong that turns the water directly into vapor, leaving behind sharp formations. Scientists from the University of Cardiff say shards of ice up to 15m (50ft) high could be dotted all over the moon's surface.

Google Home Hub - Google Assistant With A Display
You see, Google wants this to be a product you place on your nightstand - or some place like that - and still feed comfortable. Google is putting a large emphasis on people being able to use the Google Home app as a one-stop-shop for their entire home.

Lady Gaga mental health essay calls for funding and awareness
One such discussion was held on Twitter earlier this year during May, which is considered as Mental Health Month. This plea was made on Wednesday at the commemoration of the World Mental Health Day .

Melania Trump Wants #MeToo Accusers to Show "Hard Evidence"
President Trump is pushing the conspiracy theory that Kavanaugh protesters were paid actors, financed by George Soros. The special is called "Being Melania - The First Lady". "And also, you know, also men".

Crude Oil Price Analysis: Risk Premiums Unwind as US Mulls Waivers
It hit a four-year high of $86.74 last week. "Iran has been off-and-on taking rupee payments for oil it sells". Singh said International Olympic Committee is importing the "usual" monthly volumes of oil from Iran.

Huawei teases Mate 20X gaming phone with better cooling and large battery
New images of Huawei's Mate 20 Pro have surfaced on Weibo , which reveals the design details of the upcoming flagship. More recently, however, gaming smartphones have become a legitimate thing, and Huawei might be the joining the fray.

Australia toil, Pakistan build big first-innings total
Yasir Shah of Pakistan recovers after being struck on the chest during day three of the first test against Australia. Australia's hopes of salvation had rested on the shoulders of Paine and vice-captain Mitch Marsh after tea.

Liverpool's Fabinho says he is adapting to English football
Andy Robertson has warned Liverpool FC that Arsenal and Chelsea FC can not be underestimated in the Premier League title race. Liverpool are now level on 20 points with Manchester City and Chelsea at the top of the Premier League after eight games.