Dow industrials sink 831 points as tech companies plunge

Dow industrials sink 831 points as tech companies plunge

The S&P 500 fell more than a percent, while the Nasdaq fared slightly better.

This would mark the sixth straight day of losses for the market, which has been rattled by rising interest rates, signs of a slowdown in the global economy and the U.S. But higher interest rates can slow economic growth and erode corporate profits. It was more than $40 five years ago.

"The #MAGA theme is unraveling a bit over the past few sessions as two-sided risks have been injected into the USA equity market", Mark McCormick, head of North American FX strategy at TD Securities, wrote in an email. Investors are further rattled about Trump's complaints about the Fed's rate increases. "I think the Fed is out of control", the president said to reporters in the Oval Office.

"As stocks go up, tech goes up more than the stock market". Investors see many of these countries as being vulnerable to higher US interest rates, which can pull away investment dollars. Boeing and Caterpillar have both fallen more than 5% this week as Trump continues to threaten additional tariffs, saying Thursday he could "do a lot more" in his trade war with Beijing. The International Monetary Fund cut its outlook for global growth this week, citing interest rates and trade tensions.

China was among the hardest hit overseas, with indexes in Shanghai and Hong Kong falling 5.2 and 3.5 percent, respectively. The Kospi in South Korea fell 3.6 percent to 2,148.97. Heating oil shed 2.6 percent to $2.33 a gallon. Industrial and internet companies also fell hard.

USA stocks slumped on Wednesday as concerns over rising interest rates and trade tensions caused a sell-off in technology and internet stocks.

The Dow Jones Industrial Average plunged more than 800 points, its worst drop in eight months, led by sharp declines in technology stocks. The Dow fell 832 points, or down 3.15 percent. The Nasdaq Composite closed at 7,422.05 for a loss of -315.97 points or -4.08%.

The financial sector fell 2.9 percent, also hurt by a 2.7 percent drop in bank stocks a day before three of the biggest banks were to report quarterly results.

Most analysts believe the pullback is temporary and that stocks will eventually recover and hit new highs.

This time around, strong economic data anxious bond investors, who sent the benchmark yield on Tuesday to 3.261 percent, the highest since early May 2011.

USA markets are coming off their steepest losses in eight months. "Then you had buy-the-dippers coming in here saying this was too much too fast", said Dennis Dick, proprietary trader at Bright Trading Llc In Las Vegas.

The dollar fell to 111.98 yen from 112.59 yen, and the euro rose to $1.1593 from $1.1525.

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

United States crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09.

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