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frozenmail.net February 21, 2018


US Market Indexes Lower Wednesday

10 February 2018, 08:40 | Virginia Santiago

Dow Jones Rallies Back, Closes Higher After Huge Market Swings

Wall Street bounces after another volatile day, global markets stabilize

USA stocks have rebounded in volatile trading overnight, with major indexes up more than 1 per cent following the biggest one-day drops for the S&P 500 and the Dow in more than six years.

The Standard & Poor's 500 index (S&P 500) declined 4.1 percent to 2,648.94 points.

Volatility returned to markets on Thursday as USA indices finished the day sharply lower, plunging them into correction territory.

The market, now in its second-longest bull run of all time, had not seen a correction for two years, an unusually long time.

The S&P 500 closed down 3.8 percent, Dow Jones Industrial Average 4.2 percent and NASDAQ Composite 3.9 percent.

The blue-chip stock average's recent drubbing, which follows its record 1,175-point drop Monday, has been fueled by fears that a long period of low interest rates and tame inflation that have boosted the economy and fueled a rapid rise in stock prices may be nearing an end as economic conditions improve.

Japanese shares were also down about 7 per cent at one point before ending 4.7 per cent lower, while markets in Hong Kong and Taiwan closed down about 5 per cent.

The bank said it will be some time before Australia's unemployment rate drops to what it considers full employment and also before the limp inflation rate - now at 1.9 per cent - reaches the midpoint of its preferred two to three percent target band.

Dow plunges 1000 as market swoons again
Boeing and United Tech gained about 1.5 percent, leading the boost for the Dow , while Amazon's 1 percent rise pushed up the S&P. Equity investors took the signal to mean interest rates will push higher, denting earnings and consumer-spending power.

Tuesday was a volatile day for the Dow, swinging over 1,100 points from peak to low and ending the session with the benchmark S&P 500 taking in its best day since before President Donald Trump's 2016 election. The Dow had previously never lost more than 777 points in a single day, as reported by CNN Money.

The fall surpasses a previous record 777.68 points drop on the Dow Jones during the financial crisis in 2008.

The biggest losses went to high-dividend companies including utility and real estate companies, as bond yields increased after a sharp drop on Monday. "This isn't a concern that markets aren't going to do well, or that corporate America isn't going to do well", she said.

S. bond yields late last week after data showed U.

Some analysts have cautioned the decrease in an unusually strong market could merely be a correction, which considers any drop below 10% healthy.

'A strong 2017 rally extending into January, low volatility, low interest rates, over-optimism and complacency, over-leverage and financial engineering, all coming to a head as investors react to the possibility of higher/faster interest rates with bond yields creeping higher to jeopardise the current market situation'. "So when I saw what the Dow was doing, the market in general, I've been concerned about it".

United States 10-year yields were at 2.789 per cent, up from 2.766 per cent on Tuesday. The index finished down 19 points, or -0.08%.



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