US Stocks Plunge as Interest Rate Fears Grip Markets

05 February, 2018, 06:28 | Author: Martin Tyler
  • Trader bemoaning big losses

The Dow closed down 666 points, or 2.5%, its biggest percentage decline since the Brexit turmoil in June 2016 and steepest point decline since the 2008 financial crisis.

The Dow had lost almost 700 points, or 2.5%, at the closing bell, with weak earnings reported from several American business behemoths, including Exxon Mobil and Google's parent company Alphabet.

This week's market pullback has come even as US economic data continues to reflect strong growth. The Dow and the Nasdaq have climbed more than 40% apiece since the 2016 election.

Assuming they have well-designed portfolios, "mom and pops sitting at home. should not be concerned, given the massive run up in the market", he added.

Others have said USA stocks were rising mostly on the economic growth that's been seen worldwide in the last two years, which also had sent foreign stocks higher.

Each of the 11 major sectors in the S&P 500 ended down on Friday.

Pentagon wants low-yield nuclear bombs
My view is that the use of or the threatened use of nuclear weapons in these circumstances simply aren't credible. Washington's new stance on nuclear weapons employment causes concern , Russia's Foreign Ministry noted.

Optimism over forecasts has caught the attention of anxious investors, who hope that strong earnings can support lofty stock valuations and offset the concerns over rising bond yields and the pace of Federal Reserve rate hikes.

Technology companies were leading stocks broadly lower in early trading, extending the market's slide into a second day.

Analysts have been eyeing a recent increase in United States bond yields that accelerated further on Friday following the jobs data.

Those factors could help to underpin USA earnings even after the tax benefit is priced in.

More recently, the market had been surging in the so-called 'Trump rally'.

The Fed also expected USA inflation on a 12-month basis to "move up this year and to stabilize" around the central bank's 2 percent target over the medium term. Some investors saw a potential buying opportunity. The Fed started raising rates two years ago.

Health officials: 100 flu-related deaths in Kentucky
Strains of the flu with greater vaccine susceptibility are expected to become more common as the season progresses, she added. Winnebago County says last week it saw more than 700 flu cases reported, bringing the season's total to just less than 2,600.

Their goal was to incentivize investors to put their cash to work in the economy - for example, by buying corporate stocks and bonds - rather than stashing it in the relative safety of government bonds.

That is unnerving for investors accustomed to the last decade's rock-bottom interest rates. The average 30-year fixed mortgage rate is around 4.2 percent, up from less than 4 percent at the end of 2017.

With half of the S&P 500 index companies still to report fourth-quarter results and potentially give guidance on 2018, profit estimates are likely to increase further.

Nonfarm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labor Department said on Friday.

On Wednesday, the Federal Reserve left its benchmark interest rate unchanged at 1.25 to 1.5 percent after its two-day meeting, while giving an upbeat assessment of recent US economic growth.

The economy's growth already has helped push up market interest rates, and the yield on the Treasury's 10-year note hit 2.84 percent on Friday, its highest level since 2014.

Punxsutawney Phil sees shadow; predicts six more weeks of winter
Phil nearly always predicts six more weeks of winter , having predicted an early spring a mere 18 times out of 121 events. Part of the pleasure to be found in Groundhog Day comes from its ability to stimulate, even surprise, on repeat viewings.

Recommended:



Popular

United States assumptions about China's nuclear development absurd
The Pentagon called for the United States to develop two new types of weapons in an update of its nuclear policy Friday. The GBSD program will also modernize the 450 ICBM launch facilities that will support the fielding of 400 ICBMs.

Russian plane shot down by rebels in Syria
The plane was apparently brought down by a man-portable air defense system (ManPADS) surface-to-air missile. Russian Federation has fought alongside its Syrian allies and targeted rebels in the area.

Stormy Daniels deflects Kimmel's questions about alleged affair with Trump
Wendy Williams has no time for Story Daniels , the porn star who may or may not have had an affair with President Donald Trump . At one point, Kimmel began reading excerpts from In Touch's transcript outlining the affair, but Daniels cut him off.

LeBron open to FA talks with Warriors
The James-Warriors story was, of course, a huge story for its implications. "I know exactly how it works", he said. Within hours, the James report was the biggest story on ESPN , and commentator Stephen A.

'US actions a threat to Korean ties'
In between Olympic games, athletes earn money when they clinch event and championship titles in their sport and rake in cash from endorsement deals and sponsorships.

Ryan making his 2nd test start for Ireland vs France in 6N
Add into the mix the form of the premier Irish provinces in Europe, the form book points only to one victor . Jonathan Sexton , centre, during Ireland rugby squad training at Carton House in Maynooth, Co Kildare.

Jonathan Kraft Issues Tom Brady Extremely High Compliment Ahead Of Super Bowl
Another component to winning against the Patriots is to stay in the lead until the game's final few seconds, he said. This season, 23.8 percent of Brady's passes traveled 15 yards or more in the air, according to Sportradar.

Polar bears 'working out of meals'
The vision of a polar bear plucking a vulnerable seal off an ice floe is something familiar to wildlife documentary fanatics. Now, scientists can see the effects : Polar bears are swimming themselves to the brink of starvation.

Leicester City manager Claude Puel hopes Riyad Mahrez can clear his head
The business [side] of the transfer window is hard for us to manage but I think it is time now to move on and keep our focus. And it quickly emerged that they wanted a player to be thrown into the bargain to make up part of that valuation.

How to avoid prostate cancer - ways to reduce the risk
Some small studies suggest that administering common chemotherapy agents in new ways may reduce heart disease risks. Trying to remove yourself from these at-risk brackets by altering your lifestyle could help with prevention.