USA stocks plunge further, Dow drops 830 points

Sudden jump in US interest rates prompts Wall Street stock plunge

Sudden jump in US interest rates prompts Wall Street stock plunge

The market had been calm from late June through September as investors were satisfied with continued economic growth, strong company profits, and signs of progress in trade talks between the US and several partners, although the USA remained at odds with China.

The index was down 832 points, or 3 percent, at the end of trading Wednesday.

Wall Street stocks plunged Wednesday, with major indices losing more than three percent in a selloff prompted by the sudden jump in U.S. interest rates.

US market indexes continued their risk-off selling with all of the major indexes closing with losses.

US markets are coming off their steepest losses in eight months.

"The thing people are trying to hang their hat on is a cooler CPI read".

"What we're seeing here is the market positioning for potential lower growth".

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

Stocks were lower at the halfway point Thursday in volatile trading, with the Dow Industrials down more than 1,000 points over two days.

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

The Nasdaq composite, with a large contingent of tech stocks, tumbled 315.97 points, or 4.1 percent, to 7,422.05.

The Nasdaq composite has fallen 9.6 percent since it set a record high in late August and the Russell 2000 has fallen 11 percent.

Among the tech sector's worst performers in Europe, Austrian chipmaker AMS fell 5.9 percent and STMicroelectronics closed down 5.8 percent. In the previous session, the stock jumped 15 per cent on a Globe and Mail report that Altria Group was in talks for acquiring a stake. France's CAC 40 and the British FTSE 100 both dropped 1.9 percent and the DAX in Germany lost 1.5 percent.

But Asian bourses were hit hardest on Thursday afternoon - Hong Kong (-3.5pc), Tokyo (-3.9pc), Seoul (-4.4pc) and Shanghai (-5.2pc). The Kospi in South Korea fell 4.4 per cent.

Rising interest rates from the Fed and a tight employment market don't reassure investors, either.

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.

It will take more than a daily stock market correction to stop the Fed from hiking, said George Goncalves, managing director and head of fixed income strategy at Nomura in NY.

"Equity markets were pulverized today as investors remain in full out retreat and even the most pessimistic of equity bears are still in shock by the sheer magnitude of the move", he added. "I don't view this as an indication that there's a turn in the market".

"We saw a rally this morning, and that ended up being a suckers' rally".

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

After hitting an intraday high of 28.84, the CBOE Volatility Index, popularly known as the "fear gauge", ended the day up 2 points at 24.98, its highest close since February 12.

Intel fell 2.6 percent and Nvidia 4.4 percent.

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