Economy

Tech stocks lead Wall Street slump as investors shun risk

Tech stocks lead Wall Street slump as investors shun risk

The 800-point drop of the Dow Jones Industrial Average on October 10 may be a blip, and so could the almost 5% decline over five days in the S&P 500.

During the regular session, the S&P 500 marked its biggest daily percentage fall since February 8 - 3.3 percent - and Nasdaq registered its biggest fall since June 24, 2016 - 4.1 percent - as rising U.S. Treasury yields sent investors fleeing from risky assets.

Shares in Facebook, Amazon, Apple, Netflix and Google's parent company Alphabet - the so-called "FAANG" stocks that have driven U.S. markets to all-time highs recently - all fell in NY trading.

The benchmark index, the S&P 500, experienced its sixth straight day of losses, falling 2.1pc to 2,728.

The Dow Jones industrial average gave up 738 points, or 2.8 per cent, to 25,686. The Nasdaq Composite closed at 7,422.05 for a loss of -315.97 points or -4.08%. The tech-heavy Nasdaq Composite was down by 2.4 percent.

Tropical Storm Michael, Heading North, Could Become Category 2 Hurricane
Michael was lashing western Cuba late Monday morning with heavy rains and strong winds , according to the hurricane center. Rick Scott warned that the storm could have far-reaching effects, regardless of where it lands.

US shares are set for big declines when markets open Thursday. Defensive utilities were the only space spared, with tech, the market leader this year, getting hit with some of the worst selling. It was more than $40 five years ago. Amazon skidded 6.2 percent to $1,755.25.

Stocks are in the midst of a scary October slump, sliding sharply because investors are anxious about rising interest rates.

Shares in upscale jewellery retailer Tiffany & Co and perfume maker Estee Lauder both fell 7 percent after a warning from French luxury goods firm LVMH about softening demand in China. Amazon and Alphabet, respectively the second- and fourth-most valuable US companies, are in what's known as a "correction", a drop of more than 10 percent from a recent peak. Higher rates increase borrowing costs, pinching corporate profits.

"If the Feds are insane, this market reaction is bordering on insanity, as so many negative crosscurrents collide that is merely impossible to find a glint of optimism", he added.

In theory, banks should do better if the Fed keeps raising interest rates and bond yields climb higher since it will make their loans more profitable.

Nicondra: Tropical Storm In the Gulf of Mexico Likely
The north Florida city of Tallahassee on Sunday opened two locations where residents could get sandbags in case of flooding. Currently, Leslie is located about 680 miles northeast of Bermuda, with 60 mph sustained winds, and moving east at 12 mph.

After months of declines, the price of gold jumped by the most in two years, rising 2.9 percent to $1,227.60 an ounce.

All 11 sectors in the S&P 500 were lower, with banks and energy stocks the hardest hit.

The dollar index fell 0.31 per cent, with the euro up 0.4 per cent to $1.1564.

Alibaba dropped 4.1 percent after Morgan Stanley and Raymond James cut their near-term profit estimates on the Chinese e-commerce company, citing a softer economic environment in China.

The dollar fell to 112.59 Japanese yen from 113.05 yen late Tuesday.

Taylor Swift's endorsement of Democrats causes spike in voter registrations
Swift's Instagram post had recommended people visit the website Vote.org. "Last day to register to vote is October 9". Vote.org said 56,669 people registered nationwide in August, and 190,178 registered in September.


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