Dow tumbles more than 4% as US stock losses deepen

Dow tumbles more than 4% as US stock losses deepen

Dow tumbles more than 4% as US stock losses deepen

Gains were led by mining stocks, with energy, financials and health care also contributing to the recovery.

A wild session on Tuesday had seen the Dow swing more than 1,100 points from peak to trough and ended with the benchmark S&P 500 recording its best day since just before President Donald Trump's election in 2016.

The Dow Jones industrial average jumped as much as 510 points.

The S&P 500 also suffered, plummeting 101 points to finish at 2,581. The Nasdaq composite fell 274.82 points, or 3.9 percent, to 6,777.16. The S&P 500 closed at 2,681.66 for a loss of -13.48 points or -0.50%. The TSX is down 8.2 per cent from its all-time high of 16,412.94, set on January 4.

Trading has been turbulent all day. Tuesday's plunge has pushed the Dow close to correction territory, down 9.3% from its January high.

The gains across the pond, however, did not spread to Asian markets, with the majority posting losses.

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The Dow is 10 percent below the record high it set just two weeks ago, putting it in what is known on Wall Street as a "correction".

Analysts, who have said for months that the financial markets were due a correction after a long period of rising prices, urged calm. Markets can not be one way. That makes it easy to forget that the stock market's rise and fall is, well, pretty commonplace.

Bond yields in the United States have also risen in recent weeks, typically a signal of higher rates. In fact, investors had devised very profitable investment products that allowed them to bet that volatility would remain low.

Emerging market stocks lost 2.42 per cent. "Central bank tightening needs to be taken seriously all of the time", said Fritz Folts, chief investment strategist at 3EDGE Asset Management, in Boston. So, it could be another volatile day. On Thursday, the bank's leader said British regulators may have to ease off of the economic stimulus faster than expected. Experts do think the global economy will keep growing this year even though that is likely to bring more inflation.

"Markets move in both directions, full stop".

We're in the ninth year of recovery after the Great Recession, and sharp stock market pullbacks have been relatively infrequent in recent years. Brent crude, which is used to price global oils, shed 73 cents to $66.89 per barrel.

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Wholesale gasoline lost 4 cents to $1.81 a gallon. Natural gas gave up 1 cent to $2.70 per 1,000 cubic feet. Those bets against market volatility blew up on Monday.

And the Russell 2000 index of smaller-company stocks dropped 44.18 points, or 2.9 per cent, to 1,463.79.

USA stocks are attempting to rebound on Tuesday. Hong Kong's Hang Seng skidded 5.1 percent and South Korea's Kospi declined 1.5 percent. Germany's DAX declined 2.6 percent.

In other commodities trading, copper fell 3 cents to $3.19 a pound.

The dollar fell to 108.84 yen from 109.42 yen.

Sparking the turbulence was a report released last week showing that hourly wage growth rose at its fastest pace since 2009. All 30 components of the blue-chip Dow finished negative.

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But the more important context is that by proportion it fell 4.6 percent, which last happened in August 2011.

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