Wall Street plummets; S&P, Dow confirm correction

Traders on the floor of the New York Stock Exchange yesterday as the Dow closed down by 4.6 per cent

The Dow has lost about 10 percent since reaching a record high of 26,616 on January 26, 2018 - putting it in correction territory.

Less than two weeks later, though, the market has wiped out 10 percent of its value during its surge upward and is now in correction territory.

Gold futures fell 0.9 per cent to US$1,321.1 an ounce, weighing on some mining stocks.

Shares were lower in all Asian markets after Wall Street officially began its first correction in two years, though losses were moderate with no sign of panic selling.

The Dow Jones has gained nearly 40 percent since President Donald Trump was elected, CNN reported. The Nasdaq composite lost 14 points, or 0.2 percent, to 7,225. Stocks fell sharply on Friday as traders anxious about inflation and rising interest rates.

United States markets have been under pressure all week, with the Dow notching its biggest loss ever in terms of points on Monday, rallying on Tuesday and finishing modestly lower Wednesday.

Some investors, however, fear the market is over-stretched in the context of higher inflation and rising bond yields as central banks withdraw their easy money policies of recent years.

The Standard & Poor's 500 stock market, a broader market gauge that is a core holding in 401 (k) plans, also fell into correction terrritory.

The stock market has also been upended by an unwinding of a popular trade that relied on market volatility to remain calm.

Wall Street tumbled back into sell-off mode Thursday (Feb 8), with the Dow plunging more than 1,000 points as worries over interest rate hikes continued to drag the market down. At its low for the day, during the scary period from 3 to 3:15 p.m., the S&P was down about 4.4%.

The move lower will provide investors with cheaper stock valuations that are closer to historical norms and will be constructive for the market in the long term, Kenny said.

Financial analysts regard corrections as a normal event but say the latest unusually abrupt plunge might have been triggered by a combination of events that rattled investors.

The benchmark S&P 500 lost 100 pints, or 3.75%, while the tech heavy Nasdaq lost 274 points, or 3.9%.

Overall, global markets have lost some $4 trillion U.S. as the benchmark MSCI's 47-country world index fell almost eight per cent since Friday.

The Dow was down 530 points, or 2 percent, to 24,999.

By late morning Asian time benchmark USA crude had fallen 73 cents to $63.42 per barrel in electronic trading on the New York Mercantile Exchange.

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