Skip Navigation Links
SEARCH  



 
Bookmark and Share
The Dow tumbles more than 500 points

traders

  • Stocks fell Wednesday as Wall Street sweats over global growth prospects and a bond selloff.
  • The 2-year yield hit its highest level since 2008.
  • Trade-sensitive industrial stocks also fell as tensions between Washington and Beijing persisted.

Stocks fell Wednesday as concerns about global economic growth and ongoing trade tensions continued to hang over Wall Street and after the bond market resumed a sell-off that started last week.

The Dow Jones industrial average dropped as many as 506 points to 25,910.89 at its lows. Technology companies were among the losers, with the Nasdaq Composite falling more than 2.3% to 7,559.73. The S&P 500 shed 1.6% to 2,834.61, on track for its steepest loss since June.

Elsewhere, shares of Sears plummeted more than 37% after a report said the cash-strapped retailer could file for bankruptcy protection as soon as this week. 

US government bonds resumed a sell-off after yields surged to multiyear highs last week, with the two-year yield touching 2.906%, its highest since June 2008. With a humming US economy, the Federal Reserve is expected to continue hiking interest rates. The central bank has increased rates three times this year and eight times since the financial crisis.

On Tuesday, the International Monetary Fund downgraded its outlook for the world economy. Citing concerns about trade and emerging markets, the international lender lowered its global growth forecast for this year and next in a report. 

An ongoing conflict between Washington and Beijing weighed on large-cap industrial stocks, including Boeing (-2.5%) and Caterpillar (-1.6%). When asked by a reporter Tuesday if he was ready to place additional tariffs on Chinese goods, President Donald Trump replied: "Sure, absolutely." 

And a look at the upcoming economic calendar: 

  • Monthly inflation numbers are out in the US. 
  • Earnings season kicks off with reports from JPMorgan Chase, Citigroup and Wells Fargo.
  • The International Monetary Fund and the World Bank hold an annual gathering in Indonesia.

Now Read:

The world's biggest stock bear predicts 'immediate and severe consequences' for the record-setting market — and explains why $20 trillion will be wiped from stocks

Morgan Stanley’s 2019 forecast for tech stocks has an ominous resemblance to the dotcom-bubble era

Dow Jones

SEE ALSO: Mexico's state-owned oil giant just announced a major discovery that could transform the country's struggling industry

Join the conversation about this story »

NOW WATCH: One bite from this tick could ruin red meat for the rest of your life



Full "The Business Insider: The Money Game" article




Disclaimer | Terms Of Use And Privacy Statement


© Metals News. All rights reserved.