Dow plunges 1033 points and sinks into correction


Wild swings over the past week have left stocks in the red for the year. The Dow moved almost 500 points during trading on Wednesday before closing down 19 points, or 0.08 per cent, at 24,893.

USA crude oil fell 76 cents, or 1.2 percent, to close at $63.39 a barrel in NY.

Traders are still braced for more volatility as they try to figure out if the swings of the past week are the start of a deeper correction or just a temporary blip in the US market's nine-year bull run. The decline was overdue, according to David J. Kostin, chief US equity strategist, at Goldman Sachs.

The market started the day just modestly lower, but selling picked up as the 10-year Treasury yield hit a four-year high of 2.88%, renewing concerns about inflation and higher interest rates. Kostin wrote in a research note earlier this week. Tokyo's Nikkei 225 was off 2.7 percent at 21,295.38 and Hong Kong's Hang Seng retreated 3.4 percent to 29,142.87.

In South Korea the Kospi, which saw only modest losses on Tuesday, fell back to close 2.3 percent lower at 2,396.53 as investors fretted over whether the U.S. Federal Reserve will tighten monetary policy.

"Though never any fun to endure", it said, "pullbacks are a normal course for long-term investing".

Two of the USA stock market's three major indexes are in correction territory now.

The S&P energy index was up more than 0.4%, led by Anadarko Petroleum's 3.5% gain and an uptick in oil prices.

It's unclear if the global markets are really moving in "lockstep", as some observers have suggested, but uncertainty abounds.

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Bond yields have spiked as analysts struggle with an increasingly volatile market. And when that happens, well, it's time to be fearful again.

The U.S. stock market has climbed to record peaks since Trump's election on the prospect of tax cuts and corporate deregulation as well as optimism over corporate earnings. That's less true for China, whose financial markets are more cloistered from worldwide investors.

USA stocks fell in volatile trading on Tuesday, as a pullback from record highs steepened following the biggest one-day declines for the S&P 500 and Dow in more than six years.

The Dow Jones industrial average fell as much as 500 points in early trading, bringing the index down 10 percent from the record high it reached on January 26.

USA markets were plunged into fresh turmoil on Thursday as the Dow Jones plunged by more than 1,000 points and the S&P shed 3.7 per cent, reigniting fears about a severe stock market rout. The Nasdaq composite fell 274.82 points, or 3.9 percent, to 6,777.16.

And the 2018 gains for the Dow and S&P have been wiped out. The fragile rebound lifted the market a bit, and the Dow and S&P 500 are now about 8% off their from all-time highs.

The Dow and S&P are now back in positive territory for 2018.

The Wall Street Journal reported last month that a number of women accused him of sexual harassment or assault, and said he paid 7.5 million dollars to settle one such case. Numerous companies that led the market's gains over the a year ago have struggled badly in the last week.

USA stocks swooned Friday and Monday as investors anxious that accelerating inflation and higher interest rates could derail the market's record-setting rally. Brent crude, the worldwide standard for oil prices, dropped 15 cents to $65.36 per barrel in London.