Dow industrials sink 831 points as tech stocks plunge

Wall Street slumps as investors dump tech stocks

Wall Street slumps as investors dump tech stocks

USA stocks plunged to their worst loss in eight months on Wednesday as technology companies continued to drop. A hallmark of the past decade has been ultra-low interest rates, which the Federal Reserve used to promote growth in the aftermath of the 2008 financial crisis.

The S&P 500 was also down 3% while the tech-heavy Nasdaq (Frankfurt: 813516 - news) lost 4%. The Russell 2000 index of smaller-company stocks fell 30.03 points, or 1.9 percent, to 1,545.38. Industrial and internet companies also fell hard. All this means that bonds, backed by the United States government, have become more attractive and thus many investors are turning to them as a risk-free investment. President Trump has broken from tradition and repeatedly criticized the Fed for raising interest rates.

The technology-heavy Nasdaq composite dropped 4.1% to 7,422 points, its biggest loss since February 8.

Bond yields and therefore interest rates have been rising for more than two years as the US economy grew strong. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.

The Dow ended down 831 points, or 3.1%, at 25,598. Tencent has retreated 43 percent from its high this year and fallen out of the top 10 global companies by market value.

The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August. Heating oil fell 1.2 percent to $2.39 a gallon.

Back in late January and early February, there was a 10 percent correction in the S&P 500 .SPX, with stock investors spooked as Treasury yield increases intensified with a monthly payrolls report showing the biggest wage gains for workers since 2009.

Bulgarian man charged with murder of TV journalist Viktoria Marinova
They called on Bulgarian authorities to identify, arrest and prosecute those responsible for Marinova's killing. A candlelight vigil in her memory will be held on Monday evening in both Ruse and the capital Sofia .

Technology and retail companies continued to stumble. Delta Air Lines shares rose 3.8 percent after the airline beat profit expectations. Earnings season begins in earnest on Friday with results from JPMorgan Chase and other large banks. Over the past two days, it has lost more than 1,300 points.

Oil prices slumped to two-week lows as global stock markets fell, with investor sentiment made more bearish by an industry report showing USA crude inventories rising more than expected. Microsoft and Alphabet, Google's parent company, held up better than the rest of the market.

The S&P 500 posted no new 52-week highs and 62 new lows; the Nasdaq Composite recorded 6 new highs and 291 new lows.

Wholesale gasoline shed 2.7 per cent to $2.02 a gallon.

The markets landed in the red despite a government report that showed consumer prices rose 0.1 percent last month, less than expected.

Gold rose 0.2 per cent to $1,193.40 an ounce. Strong economic data and a positive outlook from Fed officials have led to a sell-off in U.S. Treasury bonds, particularly longer-term ones, sparking concerns about even higher interest rates.

The Japanese yen strengthened 0.01 per cent versus the greenback at 112.29.

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