U.S. stocks tumble as Dow sheds another 1000 points

Markets Right Now Asian markets track plunge on Wall Street

Markets Right Now Asian markets track plunge on Wall Street

Near 2030 GMT, the Dow Jones Industrial Average was at 24,770.09, up about 425 points, or 1.7%, just off its session highs in a day of dramatic lurches in both directions.

The pan-European FTSEurofirst 300 index rose 2.02 percent and MSCI's gauge of stocks across the globe gained 0.06 percent.

But some analysts are pointing the finger at the job market. There was also no apparent glitch in the market's computers. But if inflation picks up, the Fed could raise rates more often or more steeply than it had planned.

This is approximately how much the stock market has lost since Washington passed personal and corporate income tax cuts on December 20.

The Dow's plunge on Monday set off global shock waves.

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.

As a result, he thinks that it's entirely possible that this has led to some "complacency", with investors perhaps "getting a little ahead of themselves". There was no trading in New Zealand on Tuesday because it was Waitangi Day.

The Nasdaq slumped more than 2 per cent, quickly turned positive, then sank again. Lower interest rates hurt banks because they can not charge as much money for mortgages and other types of loans.

The turmoil in global stock markets has echoes with what's been going on with bitcoin, the hugely volatile virtual currency, which rose exponentially to around $20,000 a year ago before a precipitous slump.

And as you might imagine, the increased prevalence of computer-driven program trading has made markets more susceptible to sudden corrections than ever before. The Nasdaq's loss has lasted the entire week, taking its decline to 3.7%.

Keep the sell-off in perspective, warned Kristina Hooper, chief global market strategist at Invesco. South Korea's Kospi declined 2.4 percent to 2,431.88 and the Shanghai Composite index was off 2.2 percent at 3,412.55. Britain's FTSE 100 fell 1.5 percent and the French CAC 40 lost 2 percent.

Though many stock indexes are close to where they started the year, the losses mark a reversal of fortune following a sustained period of gains, a pullback that some market pros have been predicting for some time.

"There would be few places to hide from the risk-off atmosphere that is expected to extend its stay in Asian markets today in a significant manner", Jingyi Pan of IG said in a commentary.

In Toronto, the S&P/TSX composite index was down 264.97 points, or 1.73 per cent, to 15,065.61, in a broad-based decline. It was a similar story on Germany's DAX, which was 3 per cent lower at 12,308. Friday's U.S.jobs report showed wages grew at a faster pace in January, and investors anxious that that means inflation is speeding up, and that the Federal Reserve will have to raise interest rates faster than previously expected in order to keep that inflation in check. Investors remain fearful that signs of rising inflation and higher interest rates could bring an end to the bull market that has sent stocks to record high after record high in recent years.

Shares are taking a beating in Asia after the biggest drop in the Dow Jones industrial average in six and a half years.

The percentage decline on Thursday, 4.2%, wasn't almost as bad as the scary days of the 2008 financial crisis. Natural gas added 1 cent to $2.76 per 1,000 cubic feet.

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