Wall Street struggles for direction in choppy trading

LATEST: Chief Market Strategist and Head of Fixed Income response to market correction

LATEST: Chief Market Strategist and Head of Fixed Income response to market correction

The Dow Jones Industrial Average dropped by 1,032 points on Thursday, or 4.15 percent, closing at 23,860.46.

With those declines, the indexes confirmed they were in correction territory, both falling more than 10 percent from their January 26 record highs and leaving investors anxious about how much longer the selloff may go.

While Wall Street has been calling for a correction for some time, given the market's euphoric rise, the fall has been more violent and quicker than anticipated. But it began the day down sharply, with triple-digit losses.

The drop comes on the heels of a similar plunge Monday that erased the stock market's gains for the year.

General Electric is the only company that has been included in the DJIA since its launch.

In earnings news, Twitter (TWTR.N) rose 12.2 percent after the social media company delivered its first quarterly profit and an unexpected return to revenue growth.

That's good for the economy, but investors anxious that rising wages will hurt corporate profits and could signal an increase in inflation. It could prompt the Federal Reserve to raise interest rates at a faster pace, which would act as a brake on the economy. "We're monitoring the stock markets, they are functioning very well and we continue to believe in the long-term impact of the stock markets", Mnuchin said. The Fed's key rate was "near zero for years". The S&P 500.SPX gained 25 points, or 0.96 percent, to 2,606. But the losses are way worse in places like China and Argentina.

Tuesday's wild trading session saw the Dow swing more than 1,100 points from its low to its high and ended with the benchmark S&P 500 tallying its best day since just before President Donald Trump's November 2016 election.

The Dow Jones industrial average briefly sank 500 points in afternoon trading after surging more than 349 points earlier in the day.

"We haven't seen interest rates rise like this in a long time", Guerrini said. "In January we talked about fear of missing out".

Dudley, who called the market slump "small potatoes", said the "jury is still out" on the number of rate hikes.

The losses were broad.

Technology companies accounted for most of the broad gains, outweighing losses in energy stocks, which slumped as US crude prices declined, sending the price of oil below $60 a barrel for the first time this year.

"Investors were dumping out of stocks", NPR's Uri Berliner reports. The yield on the 10-year Treasury note was unchanged at 2.80 percent. The stock dropped $28.24 to $59.80. A 3 percent yield is looked upon by investors as a motive for people to flee the risk of stocks for the relative safety of bonds.

Online delivery company GrubHub soared after it announced a partnership with Yum Brands, the parent of Taco Bell and KFC. GrubHub jumped $19.13, or 27.4 percent, to $89.04. It fell 76 cents, or 1.2 percent, to close at $63.39 a barrel in New York Tuesday. That means a drop of 10 percent from a recent peak. That also sent the pound higher.

In Europe, the British FTSE 100 index fell 2.4 percent while the CAC 40 in France fell 2.8 percent and Germany's DAX was down 2.7 percent.

Benchmark U.S. crude lost $2.65, or 4.3%, to $58.50 per barrel on the New York Mercantile Exchange.

Bond prices fell slightly. At the close, the company's shares rose 2.27 percent to close at 11.25 dollars apiece. Fast rising interest rates would make that argument much less persuasive. "The mystery now is what level on the 10-year Treasury will, if not break the bull market's back, at least knock it back a few steps".

In other commodities trading, wholesale gasoline remained at $1.77 a gallon.

Australia's S&P/ASX 200 was up 1.0 per cent at 5,889.60. Heating oil dipped 3 cents to $1.99 a gallon.

Get the Monitor stories you care about delivered to your inbox. The Nasdaq was down 125 points, or 1.8 percent, to 6,651.

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