Sat | Apr 20, 2024

US stocks slump on day of wide swings

Published:Thursday | October 11, 2018 | 12:00 AM
AP
In this April 26, 2018, file photo, a sample of licence plates for sale at a souvenir stand are shown in front of the New York Stock Exchange in the Financial District in New York. The actively managed US stock funds that ranked among the cheapest 5 percent for fees drew US$3 billion. (AP)

Stocks slumped for a second straight day as the US market endured its most volatile stretch since February.

The Dow Jones industrials fell 545 points, or 2.1 per cent, to 25,052.83, and the benchmark S&P 500 dropped 57 points, or 2.1 per cent, to 2,728.37. Both indexes have fallen more than five per cent the past two days.

This marks the sixth straight day of losses for the market, which has been rattled by rising interest rates, signs of a slowdown in the global economy, and the United States-China trade dispute.

All of those factors could threaten the impressive profits corporate America has been reporting this year.

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

The Nasdaq fell 92 points, or 1.3 per cent, to 7,329.06. The Russell 2000 dropped 25 points, or 1.6 per cent, to 1,550.25.

Around midday on Thursday, bond yields, which have spiked over the last week, slid after the US Labor Department said consumer prices rose less than economists expected in September. The yield on the 10-year Treasury fell to 3.16 per cent.

- AP