Friday, 19 October, 2018

Stock prices plummet amid tech selloff, rising interest rates

Wall Street slumps as investors dump tech stocks Modal Trigger Getty Images
Jean Garcia | 11 October, 2018, 20:13

The Dow Jones Industrial Average suffered its worst loss in eight months, falling 3.1 percent to 25,598.74.

The losses were widespread, and stocks that have been the biggest winners on the market the last few years, including technology companies and retailers, suffered steep declines.

Wall Street is hoping that the worst of a brutal correction will soon be over, but today's not looking much better after Wednesday's big plunge. Amazon skidded 6.2 percent to $1,755.25 and Alphabet, Google's parent company, gave up 4.6 percent to $1,092.16.

Luxury retailers tumbled. Tiffany plunged 9.5 per cent to $111.28 and Ralph Lauren fell 7.3 per cent to $118.42.

"Clearly stocks are spooked by higher rates and maybe some inflation that seems to be creeping in", said Michael Farr, CEO of Farr, Miller & Washington.

"As stocks go up, tech goes up more than the stock market".

The Dow Jones industrial average had its second-biggest drop of the year, plunging almost 500 points, or 1.9 percent, shortly after 2:00 p.m.

Some of the biggest losers were tech companies.

The U.S. trade war with China has largely been brushed off by the markets, but the slide shows it may finally be taking a toll. 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.

Umpire labels Kyrgios' effort 'borderline'
The Aussie looked solid in the opening set as Klahn - ranked 104 in the world - didn't look overly threatening to Kyrgios' charge. Kyrgios appeared exasperated and distracted at times as American qualifier Bradley Klahn took out the match in three sets.

Innes, the Singapore-based head of Head of Trading for Asia Pacific with OANDA, attributed the slide to a combination of factors, including the possibility further interest rate hikes and the battle over tariffs between the USA and China. It has fallen 7.5 percent in just five days.

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. Sears has closed hundreds of stores and sold several famous brands or put them on the block as it sees more customers abandon its stores.

Oil futures fell. US crude gave up $1.27 to $71.90 a barrel.

The dollar index fell 0.17 percent, with the euro up 0.25 percent to $1.1518. In Asia, Tokyo's Nikkei 225 gave up 3.9 per cent and Hong Kong's Hang Seng index shed 3.5 per cent.

The CAC 40 in France dropped 2.1 percent, Germany's DAX lost 2.2 percent and the FTSE 100 in London fell 1.3 percent.

Stocks from emerging markets were also hard hit.

Investors are wary of possible further US interest rate hikes. Brazil's Bovespa lost 2.5 percent and the Merval in Argentina sank 2.2 percent.

The dollar slipped to 112.17 Japanese yen from 112.27 yen late Wednesday.

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

Recommended

Senators Call for US Probe of Saudi Arabia in Khashoggi Case Senators Call for US Probe of Saudi Arabia in Khashoggi Case Khashoggi had, however, voiced distrust of the Saudi officials, and said they were unlikely to keep their words. A day earlier, the state department called for Saudi Arabia to conduct a thorough probe into the case.

Three dead as earthquakes strike Bali and Papua New Guinea Three dead as earthquakes strike Bali and Papua New Guinea Some guests at the hotel in Nusa Dua, south of Bali's main global airport fled outside after the strong tremor shook the building. The country is a particular hotspot for earthquakes as it is located on the Ring of Fire , a 40,000km area in the Pacific Ocean.

Verne Troyer’s Cause of Death Revealed Verne Troyer’s Cause of Death Revealed Evil and Austin Powers in the 1999 film Austin Powers: The Spy Who Shagged Me and its 2002 sequel Austin Powers in Goldmember . Troyer was hospitalized earlier that month after a friend found him "extremely drunk, upset and suicidal".

Soyuz crew reportedly alive after emergency landing Soyuz crew reportedly alive after emergency landing But more than a minute after launch, their Soyuz MS-10's booster failed. "An accident with the booster, 2 minutes, 45 seconds". Space officials from both Russian Federation and the USA said the two astronauts endured higher than normal G force.

Hands on with Google's Home Hub: The smart speaker for everything Hands on with Google's Home Hub: The smart speaker for everything And it provides access to Google products like Search, YouTube, Photos, Calendar, Maps, and more - all viewable from the display. Separately, the Google Home support page has been updated to support playback speed controls for news and podcasts.

HMD introduces Nokia 3.1 Plus entry-level Android One smartphone HMD introduces Nokia 3.1 Plus entry-level Android One smartphone The rear cameras are a 13MP f/2.0 main module with a 5MP depth sensor while the front facing camera is a fixed-focus 8MP shooter. In addition to Nokia 6.1 Plus, HMD has said that it will be rolling out the Android Pie update for Nokia 6.1 as well in October.

'KUWTK': Kourtney and Khloe Kardashian's Outfits 'Disgusting' During Tokyo Fitting, Says Kim 'KUWTK': Kourtney and Khloe Kardashian's Outfits 'Disgusting' During Tokyo Fitting, Says Kim I'm not telling you guys who to be and what to wear or anything, but I'm telling you who to be and what to wear. Hopefully she realizes how tiresome she became, and cares just a little bit less about image moving forward.

'The Fed has gone crazy': Trump points finger for Wall Street tumble 'The Fed has gone crazy': Trump points finger for Wall Street tumble The Fed is going wild. "I mean, I don't know what their problem is but they're raising interest rates and it's ridiculous". On Friday, federal data showed that the USA jobless rate fell to 3.7 percent in September, its lowest point since 1969.

Samsung Galaxy A9 is the world's first quad-cam smartphone The Infinity Display design allows the notch-free screen of the Galaxy A9 to deliver an aspect ratio of 18.5:9. The 128GB of storage is impressive, with the microSD card slot able to tack on up to an additional 512GB.

Florida Panhandle pummeled by record-breaking Hurricane Michael Florida Panhandle pummeled by record-breaking Hurricane Michael Brock Long, head of the Federal Emergency Management Agency (FEMA), said early evacuation efforts in the area were slow. Characterized by strong winds and heavy rainfall, the hurricane of 1930 caused severe damage to the Dominican Republic.

Wall Street plunges as investors seek safety Wall Street plunges as investors seek safety The CAC 40 in France dropped 2.1 per cent, Germany's DAX lost 2.2 per cent and the FTSE 100 in London fell 1.3 per cent. Facebook fell 4.1 percent while Netflix and Google parent Alphabet were down 8.4 percent and 5.1 percent, respectively.

UFC boss: Khabib Nurmagomedov won't be stripped of title UFC boss: Khabib Nurmagomedov won't be stripped of title Nurmagomedov was hustled out, surrounded by security officers, as a pro-McGregor crowd jeered and threw drinks at him. In the main event for the fight card, Nurmagomedov submitted former champion Conor McGregor in the fourth round.

Five Washington children hospitalized with sudden paralysis Five Washington children hospitalized with sudden paralysis The Center for Disease Control (CDC ) said there have been 38 confirmed cases of AFM this year through the end of September. Meade said sometimes people recover from the paralysis , but others don't recover even after several years.

Residents Prepare to Evacuate as Hurricane Michael Heads Toward Florida Panhandle Residents Prepare to Evacuate as Hurricane Michael Heads Toward Florida Panhandle Tropical Storm Warning:A Tropical Storm Warning is in effect for the Alabama/Florida border to the Mississippi/Alabama border. Energy companies halted almost a fifth of Gulf of Mexico oil production and evacuated personnel from 10 platforms on Monday.

Updates, tracking resources as storm makes landfall Updates, tracking resources as storm makes landfall A Panhandle man was killed by a tree that toppled on a home, Gadsden County Sheriff's Office spokesperson Anglie Hightower said. Michael's minimum central pressure - a key measure of hurricane strength - was measured at 919 millibars when it made landfall.