MARKET MELTDOWN: Global Markets Reel, But Dow Turns Positive

MARKET MELTDOWN: Global Markets Reel, But Dow Turns Positive

MARKET MELTDOWN: Global Markets Reel, But Dow Turns Positive

USA stocks plunged to their worst loss in eight months on Wednesday as technology companies continued to drop.

Canadian stocks also fell on Thursday, weighed down by a more than 2-per-cent drop in healthcare and energy stocks amid a broad based sell-off in global equities. "Since the market bottomed in March 2009, it's been more than 10 years of growth stocks leading the way non-stop".

A surge in Treasury yields appears to be fueling the losses, as the 10-year US Treasury yield spiked last month and has continued to climb throughout October, landing at 3.21 per cent.

The 10-year Treasury note yield traded around 3.23 percent a day after hitting its highest level since 2011. Chip gear producers Applied Materials, Teradyne and ASML Holdings fell between 3.5 percent and 4.6 percent.

The S&P 500 and tech-heavy Nasdaq joined in Wednesday's carnage, falling 3.3 percent and 4.1 percent, respectively.

Oil prices slumped to two-week lows as global stock markets fell, with investor sentiment made more bearish by an industry report showing USA crude inventories rising more than expected. The Nasdaq dropped more than 4% in the worst percentage decline since June 2016.

The Dow Jones Industrial Average fell 198.28 points, or 0.77 per cent, to 25,400.46.

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Nasdaq losers also include big names like Netflix, Nvidia, Adobe and Amazon - which also dropped somewhat similar to their cousins in the crypto market. The Russell 2000 dropped 25 points, or 1.6 percent, to 1,550.25. Investors see many of these countries as being vulnerable to higher USA interest rates, which can pull away investment dollars.

USA government bonds resumed a selloff after rising to multi-year highs last week, with the 2-year yield rising to 2.906%, its highest level since June 2008.

"Both companies highlighted rising costs, not only input costs but increasing operating expenses (and) marketing expenses", she said. Some early relief over a tame report on inflation gave way to renewed selling. Amazon, Apple, Alphabet and Facebook all fell by between 2.3pc and 3.9pc. Adams, of Bloomberg Intelligence, said investors have concerns about their future profitability, too.

The pullback - particularly for tech stocks - is needed, argued Joe Heider, president of Cirrus Wealth Management. In 1987, stocks dropped more than 20 percent on a single day-Black Monday, Oct. 19-after a strong rally crashed into the Persian Gulf turmoil and trade deficits.

Meanwhile struggling retailer Sears was in focus as the Wall Street Journal reported that it was preparing to file for bankruptcy.

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.

9 a.m.: This article was updated with more recent market results.

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