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

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

"When we have a recalibration in values, it's not surprising that it takes more than one day", said Art Hogan, chief market strategist at B. Riley FBR.

Many investors now believe that the Federal Reserve's campaign to "normalize" monetary policy, reversing years of extraordinary support that included the quantitative easing bond buying program and keeping its overnight target very low, will push interest rates higher than previously thought.

The Dow Jones fell by more than 500 points, a drop of nearly 2pc, while the wider S&P 500 index fell for a fifth day straight, its worst run in nearly two years.

Investors see many of these countries as being vulnerable to higher USA interest rates, which can pull away investment dollars.

Tech stocks and companies that sell non-essentials to consumers have been some of the top performers over the previous year, gaining almost twice as much ground as the S&P 500. The Nasdaq's 2-percent drop pulled it 7.1 percent away from its high. The FAANGs, spread over three sectors, were down between 1.4 percent and 5.4 percent.

The biggest driver for the market over the last week has been interest rates, which began spurting higher after several encouraging reports on the economy. Some early relief over a tame report on inflation gave way to renewed selling.

Bond yields, which have spiked over the last week, slid after the Labor Department said consumer prices rose less than economists expected in September. On Wednesday, the 10-year yield once again touched its highest level in seven years.

Death Toll from Hurricane Michael Rises to at Least Five
As of Thursday morning, the storm was centered about 40 miles west-northwest of Columbia, South Carolina, and is headed northeast. They meant to sell children's toys and host family-friendly events, a need they saw in the community. "I still can't believe it".

Surprise 'South Park' Ending Is A Massive Troll Of 'The Simpsons'
Hankey had been fired from directing the annual holiday pageant after a series of "offensive tweets" from his past resurfaced. The documentary that really brought the issues with The Simpsons' portrayal of Apu was aptly titled " The Problem With Apu ".

Tropical Depression Fourteen Forms Overnight, Possible Threat To Florida Panhandle
It was about 990 miles east-northeast of Bermuda and about 1,170 miles west of the Azores, with maximum sustained winds of 50 mph. In the meantime, Florida Governor Rick Scott has declared a State of Emergency for the Florida Panhandle and Big Bend areas.

Tech stocks, hit hard Wednesday, crept back into positive territory Thursday morning. Barclays is particularly concerned about a choppy earnings season for tech companies. It was at just 3.05 percent early last week. The S&P 500 shed 1.53% to 2,839.43, on track for its steepest loss since June.

The Dow Jones industrial average gave up 738 points, or 2.8 per cent, to 25,686.

Bank shares were boosted as yields rose, with Citigroup and Bank of America seeing gains of 0.4 percent and 0.3 percent, respectively.

Some market watchers had predicted a bounce on Thursday after Wednesday's pullback, Wall Street's worst day since February.

Although that's largely because the United States economy is so strong, the spike in rates for the benchmark U.S. 10-Year Treasury has investors wondering if the near-decade-old bull market may finally be ending.

Trade-sensitive industrial stocks also fell as tensions between Washington and Beijing persisted.

The S&P index recorded 10 new 52-week highs and 28 new lows, while the Nasdaq recorded six new highs and 90 new lows.

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