Economy

These Are 5 of the Biggest Drops Since the Bull Market Started

These Are 5 of the Biggest Drops Since the Bull Market Started”

Stocks retreated Wednesday, with the Dow Jones industrial average losing more than 800 points in a selloff that accelerated in the final minutes of trading.

Rising bond yields have been drawing investors out of the stock market, and the best-performing stocks over the past year took some of the biggest losses Wednesday.

Wall Street has suffered heavy falls on Wednesday.

Major equity indexes in Europe fell more than 1.0 percent, also pulled down by technology shares, and gold prices inched up as some investors sought refuge in the metal.

"Clearly stocks are spooked by higher rates and maybe some inflation that seems to be creeping in", said Michael Farr, CEO of Farr, Miller & Washington.

As well, analysts expect companies in the S&P 500 will report profit growth of more than 20 per cent, year-over-year, driven partly by tax cuts and strong economic growth.

The S&P 500 index sank 95 points, or 3.3 percent, to 2,786, its fifth straight drop.

The Dow Jones Industrial Average lost 117 points, or 0.4 percent, to 26,313. It was more than US$40 five years ago.

Sears Holdings plunged 37 percent after the Wall Street Journal reported that the struggling retailer is preparing a bankruptcy filing. Bond yields move in the opposite direction to price.

Losses were fairly broad-based, with tech companies Amazon and Microsoft plummeting more than three percent, along with Boeing, Nike and Caterpillar.

Tom Cahill of Ventura Wealth Management said investors were also unnerved by remarks from luxury company LVMH of a crackdown on some goods in China amid the country's bitter dispute with the United States.

Declining issues outnumbered advancers for a 3.18-to-1 ratio on the NYSE and a 2.32-to-1 ratio on the Nasdaq.

The tumble came after the Dow Jones industrial average closed 831.83 points lower, its third-worst point decline ever, in NY trading on Wednesday amid concerns over a rise in interest rates.

The 10-year Treasury yield rose to 3.22 per cent from 3.20 per cent late Tuesday after earlier touching 3.24 per cent.

Benchmark U.S. crude oil fell 2.4 per cent to $73.17 a barrel in NY. The two-year yield rose to 2.88 percent from 2.87 percent, and the 30-year yield climbed to 3.38 percent from 3.37 percent.

The S&P 500 fell 54 points, or 1.9 percent, to 2,825.

Since Sept 10, the yield on the 10-year U.S. Treasury note is up about 28 basis points, including a big spike last week. The Japanese yen strengthened 0.53 percent versus the greenback at 112.36.

USA gold futures settled up $1.9, or 0.16 percent, at $1,193.4. The Nasdaq composite fell 152 points, or 2 percent, to 7,585.

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

The euro and sterling rose, underpinned by optimism for a Brexit deal, while the USA dollar lost ground against a basket of currencies even as US yields hovered near multiyear peaks.



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