Markets

Dow Falls 430 Points as Bond Yields Surge and China Tensions Grow

Dow Falls 430 Points as Bond Yields Surge and China Tensions Grow

"Since the market bottomed in March 2009, it's been more than 10 years of growth stocks leading the way non-stop".

And right now tech stocks-like the trillion-dollar Apple-have dominated a significant part of the rise in value of the market as a whole.

Locally, ASX futures are trading significantly lower, down 97 points (1.6 per cent), which means the heavy selling in foreign markets will extend to the Australian share market when it opens today.

Microsoft dropped 4 per cent to $107.82.

Adding to the worries was the impact of Hurricane Michael on insurance companies as well as fears about demand in China which weighed on luxury brands such as Tiffany - down 10% - as well as Ralph Lauren, which was off 8%.

The spread of red ink overseas, though, suggested more turbulence ahead for Wall Street, where a growing list of concerns is sowing unrest for a market that has been on a historic run on the back of strong earnings.

Rising interest rates make bonds more attractive relative to riskier stocks. Adams, of Bloomberg Intelligence, said investors have concerns about their future profitability, too.

The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy.

US stocks slumped on Wednesday as concerns over rising interest rates and trade tensions caused a sell-off in technology and internet stocks. Only 17 stocks in the S&P 500 wound up with a gain.

Benchmark U.S. crude oil fell 2.4 percent to $73.17 a barrel in NY.




The Nikkei average fell more than 1,000 points on the Tokyo Stock Exchange Thursday afternoon following an overnight rout on Wall Street.

It is the biggest sell-off in USA markets since February, a negative sentiment also reflected in European markets - with Paris (-2.1pc), Frankfurt (-2.2pc) and London (-1.3pc) finishing deep in the red.

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. Brent crude, the global standard, lost 2.2 per cent to $83.09 a barrel in London.

The Philadelphia Semiconductor index sank 2.64 percent, with Intel down 2.0 percent and Nvidia 4.7 percent.

The CAC 40 in France dropped 2.1 percent, Germany's DAX lost 2.2 percent and the FTSE 100 in London fell 1.3 percent.

The communication services sector also rose 0.49 percent on Thursday, with Facebook and Alphabet both rising 1.4 percent.

Among the tech sector's worst performers in Europe, Austrian chipmaker AMS fell 5.9 percent and STMicroelectronics closed down 5.8 percent.

US gold futures settled up $1.9, or 0.16 percent, at $1,193.4.

Stocks from emerging markets were also hard hit.

The dollar slipped to 112.17 Japanese yen from 112.27 yen late Wednesday.


  • Global stocks tumble after Trump 'crazy' Fed comment

    Global stocks tumble after Trump 'crazy' Fed comment

    The criticism is also unusual given that Jerome Powell, the Fed chairman, was appointed by Mr... Donald Trump's use of the word correction to describe the sell-off could be significant.
    Ross Barkley reveals World Cup 2018 frustration following England recall

    Ross Barkley reveals World Cup 2018 frustration following England recall

    " I'm playing a little bit more and that's important to me because it's important to adapt on the pitch by playing matches ". Don't write Chelsea out but they need a real "goal-getter".
    U.S.  markets drop sharply as investors are spooked by rising rates

    U.S. markets drop sharply as investors are spooked by rising rates

    Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent.
  • Hurricane Michael Has Arrived

    Hurricane Michael Has Arrived

    Tens of thousands of people were told to evacuate the coastal areas in nine counties as the storm approached with winds of 155kmh. One of the hardest-hit spots was Mexico Beach , where Michael crashed ashore as a Category 4 monster with 155mph winds.
    Pakistan requests International Monetary Fund  for bailout package

    Pakistan requests International Monetary Fund for bailout package

    Germany, the economic powerhouse of Europe, could be particularly hard hit by a drop in manufacturing orders and trade volumes. The most recent was in 2013 when Islamabad got a $6.6 billion loan to tackle a similar crisis.
    Hubble Space Telescope Gyroscope Fails, All Observations On Hold

    Hubble Space Telescope Gyroscope Fails, All Observations On Hold

    Hubble usually uses three gyros at a time for maximum efficiency, but can continue to make scientific observations with just one. According to an update from NASA , one of the telescope's gyroscopes has failed, leaving Hubble with only two working gyros.
  • Banksy painting self-shreds after selling at auction for $1.4 million

    Banksy painting self-shreds after selling at auction for $1.4 million

    We have not experienced a situation where a painting has spontaneously shredded upon achieving a record for the artist". Banksy in 2013 set up a stand near the city's Central Park and sold 20 signed canvases of his own work for $60 each.
    Michael responsible for child's death in Georgia

    Michael responsible for child's death in Georgia

    Her brother Jeff McCall, his wife, Kristi, their two children and his wife's parents rode out the storm in their three-story home. The high winds will continue through Thursday night with gusts as high as 24 miles per hour , says the National Weather Service .
    Google Drops Bid For Massive Military Cloud Computing Contract Amid Employee Pressure

    Google Drops Bid For Massive Military Cloud Computing Contract Amid Employee Pressure

    Had the JEDI contract been open to multiple vendors, we would have submitted a compelling solution for portions of it. The contract is winner-take-all, with Amazon seen as the frontrunner.
  • Google Photos Gets 'Live Albums' Feature for Automated Photo Sharing

    Google Photos Gets 'Live Albums' Feature for Automated Photo Sharing

    The Pixel 3 and its big brother also have a dedicated security chip - the Titan M, which keeps the OS and your passwords secure. And if you're now working with one of our online booking partners, you won't receive calls from the Assistant for reservations.
    Reasons Why Princess Eugenie Is the Most Relatable Royal

    Reasons Why Princess Eugenie Is the Most Relatable Royal

    They are protective over their young children, and choose not to show their children's faces when they post on social media. Prince Edward's children, 14-year-old Lady Louise Windsor and 10-year-old Viscount Severn will be special attendants.
    Two Britons believed dead in Majorca flood

    Two Britons believed dead in Majorca flood

    The British Foreign Office says it's investigating reports that a British couple are among those people who've been killed. Public broadcaster TVE showed footage of flooded streets and overturned cars along the guardrails of a major road.