February 25, 2018

Dow drops by more than 1000 points twice in week

11 February 2018, 01:48 | Megan Pierce

The FTSE 100 fell by 3.5 per cent at the open


But if inflation picks up, the Fed could raise rates more often or more steeply than it had planned.

Specialist Michael Pistillo conducts trades in VICI Properties at the closing bell on the floor of the New York Stock Exchange, Wednesday, Feb. 7, 2018.

"If this is just the implosion of shorting volatility, it's not the end of the bull market", said Michael Antonelli, managing director of institutional sales trading at Robert W. Baird in Milwaukee.

The Dow and S&P 500 capped off their worst weekly performance in two years last week after a stronger-than-expected jobs report sent interest rates higher. The Dow moved almost 500 points during trading on Wednesday before closing down 19 points, or 0.08 per cent, at 24,893.

Regardless of whether the market continues on its downward trajectory - a much more menacing "bear market" looms if stocks fall 20 percent - many analysts said the last two weeks of dramatic drops, rapid rises and followed by more heart-pounding dives have already made a distant memory of the blissful and steady multi-year rise in stocks.

Wall Street anticipates that more government spending will force the Treasury Department to borrow more money by selling additional bonds. It spiked above 50 early on Tuesday.

"We've hit this incredible dose of volatility like nothing we've seen since Brexit", Detrick said.

Treasury Secretary Steven Mnuchin appeared at a previously scheduled hearing on Capitol Hill, where he urged lawmakers to focus on the economy's strong fundamentals.

USA stocks started to tumble last week after the Labor Department said workers' wages grew at a fast rate in January.

ANALYST'S VIEW: "Risk sentiment continues to be wobbly in markets, with USA equities notching a loss at the close, while Brent prices fell sharply to $65 overnight", Mizuho Bank said in a daily commentary.

The Dow closed out a turbulent week with a 330-point rebound Friday but still suffered its biggest weekly loss since January 2016, a tumble highlighted by its first official correction in two years.

Taiwan rescuers search building for 7 missing in earthquake
Local police authorities say at least two people have been killed, and many more suffered injuries during incident. At least 280 people were injured across the city and four tall buildings partially collapsed in Tuesday's quake .

Guess to investigate Kate Upton's misconduct allegations after shares tank
In an earlier this week, Upton said about her experiences with Marciano: "It took a huge toll on my confidence and self-worth. Over the summer, Hadid was fined and ordered to perform community service for violating building codes, LACurbed reported .

Kalla wins, Bjoergen makes history at Winter Olympics
The Norwegian won her 11th career medal to break a tie with Raisa Smetanina of Russian Federation and Stefania Belmondo of Italy. Gold medals will also be decided Saturday in speed skating, short-track speed skating, ski jumping and biathlon.

The Nasdaq composite fell 3.9 percent as Facebook, Amazon and Microsoft all fell at least 4.5 percent. It'll change the complexion of the market. The broader Standard & Poor's 500 stock-index has experienced a similar slide. Prices and yields move in opposite directions, and bond buyers will want a higher yield (and lower price) to make it worth their investment. When bond yields rise, those stocks become less appealing to investors seeking income.

If borrowing costs increase, bond investors will want more return - a higher yield. "The sharp drop in the afternoon seemed to be mainly programmed trading", said Scott Brown, chief economist at Raymond James.

Global markets mostly rose and appeared calmer on Wednesday. Natural gas rose 1 cent to $2.76 per 1,000 cubic feet.

The CAC 40 in France picked up 1.8%. The Japanese Nikkei 225 plunged 4.7%, while the Shanghai composite pulled back 3.4%.

The biggest technology companies fared the worst.

Wynn Resorts climbed about 10% after casino mogul Steve Wynn resigned as chief executive following allegations of sexual misconduct.

"Know what you own, why you own it and not have more than a 4 to 5 percent concentration in any one stock because you expose yourself to undue risk", he said.

He has denied the accusations but said he could not be effective in his corporate positions in the face of those allegations.

While that's good news for workers, it has sparked concerns about inflation.

Newspaper publisher Tronc soared 3.45 dollars, or 19.1%, to 21.55 dollars after it agreed to sell the Los Angeles Times and a group of other newspapers to Dr Patrick Soon-Shiong, a major Tronc shareholder and former board member, for 500 million dollars. U.S. futures fluctuated before falling, while Treasuries steadied and the dollar rose.

Other News

Trending Now

Chris Ballard never tried to persuade Josh McDaniels to stay
The Colts said McDaniels informed them on Tuesday evening that he would not sign the deal. "So you know he's a big-time coach". NFL Network reported the Colts also have submitted a request to interview Bills defensive coordinator Leslie Frazier.

What is mixed doubles curling?
Morris won Olympic gold in 2010 playing third for Kevin Martin, while Lawes topped the podium in 2014 as vice for Jennifer Jones. They're now ranked No. 1 in the world. "So fix that and we are going to be a force".

Korean leaders may have first summit meeting in 10 years
She attributed the decline to a variety of factors including the political taunting between the United States and North Korea. Pence also spent time at the Cheonan Memorial Friday, to honor a ship sunk by a North Korean torpedo attack in 2010.

Reinsurer Swiss Re spikes on a possible $10 billion Softbank stake
SoftBank, which has declined to comment on the possible deal, has been engaged in aggressive spending over the past year. SoftBank set up a 10 trillion yen ($91.4 billion) investment vehicle called the SoftBank Vision Fund in 2016.

Mourinho relishing return to 'Mr Robson's home'
When asked why he thought Mourinho had sold him, Mata replied: "I think it was a football reason, style, something like this". When Manchester United and Newcastle met earlier this season at Old Trafford , the men in red easily took all three points.

Intel Does it Again: Winter Olympics Drone Light Show Breaks Record
Three hundred Intel Shooting Star drones were supposed to fly live, but poor conditions kept them grounded. It's a new PB for Intel's team for the most drones flown simultaneously.

This KINGDOM HEARTS 3 Trailer Adds MONSTERS, INC and More Pixar
Many more Disney movies are expected to be in the full game so expect to see more announcements and reveals later this year. They have confirmed that the game is still set for a release in 2018 and the release date will be revealed at E3 2018 .

INQUIRING REPORTER: Should Alberta boycott BC wine?
The Alberta government isn't aiming its anger at multinational corporations with shareholders, Prodan said. He maintains his focus right now is on this month's budget.

DiDi, SoftBank to provide platform services for Japan taxi industry
DiDi reports that its online platform for taxi-hailing now includes 2 million taxi drivers connected to the ap. The company continues to apply its big data capabilities to increase taxi drivers' work efficiency and income.

Kim Cattrall blasts 'cruel' Sarah Jessica Parker on Instagram
Since then, Sarah has tried to convince viewers to remain hopeful for a third installment of the franchise. "Dearest Kim , my love and condolences to you and yours and Godspeed to your beloved brother".