Wall Street suffers the worst single-day point decline in history

Peter Brown of the Institute of Investing and Financial Trading tells Brian Finn that the real worry for investors was inflation

Peter Brown of the Institute of Investing and Financial Trading tells Brian Finn that the real worry for investors was inflation

The pullback came amid another spurt higher in Treasury bond yields, a focal point for investors concerned that the Fed may accelerate rate hikes if inflation rises suddenly. Or whether it's the correction market watchers have been predicting.

Elsewhere in the region, Japan's Nikkei 225 index closed down 4.7 percent, while Hong Kong's Hang Seng dropped 4.5 percent and South Korea's Kospi index gave up 2.6 percent.

What happened in the US?

The Dow posted a 2.3% increase, its biggest daily percentage gain since January 29, 2016, while the S&P 500 rose 1.7%, its biggest one-day gain since November 7, 2016, the day before the election of Donald Trump as president.

The Dow plunged 1,032.89 points, or 4.2 percent, to 23,860.46.

"The President's focus is on our long-term economic fundamentals, which remain exceptionally strong". The Dow, which booked a record-breaking loss of 1,175 points Monday, has shed roughly 2,700 points since Friday amid a brisk retreat from all-time highs.

The uptick in volatility comes as investors react to the shifting conditions.

"The share selling....reflects a higher than previously anticipated interest rate environment", CMC Markets analyst Michael McCarthy said.

"The market had gotten way ahead of itself", said Nancy Tengler, chief investment officer of Heartland Financial.

It's been a insane few days on Wall Street.

"This isn't a collapse of the economy".

The original trigger for the US stock market sell-off was a sharp rise in USA bond yields late last week, after data showed US wages increasing at the fastest pace since 2009.

At Thursday's opening bell, it bounced from positive to negative, then headed down sharply. "In the past, we'd have 10% corrections on average every 11 months".

"As long as recession is unlikely in the USA and globally, it's likely to just be a correction", said Shane Oliver, head of investment strategy at money manager AMP Capital. "Were in good shape we just have to be smarter in how we invest money in our economy", said Nishimoto. According to Unicredit strategists, the greater weight placed by European markets on industrial stocks and financials should see Europe better suited to weather the current financial storm.

"That created a perception in the marketplace that inflation is right around the corner; that the Federal Reserve is going to start raising interest rates".

Recommended News

  • Pelosi Sets Record With 8-Hour Marathon Speech On DACA

    Pelosi Sets Record With 8-Hour Marathon Speech On DACA

    Boehner's roughly one hour speech was dubbed a "fila-Boehner". "We can do something today to at least make whole the children". Pelosi, whose meager communication skills prompt many to underestimate her leadership skills, may not have an end game.
    US Congress to vote on long-term budget deal, averting shutdown

    US Congress to vote on long-term budget deal, averting shutdown

    At the same time , many liberal Democrats wanted to withhold their support as leverage to win concessions on immigration policy. White House legislative affairs director Marc Short said the deal would raise spending by "just shy" of $300 billion.
    U.S.  stocks tumble as Dow sheds another 1000 points

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

    The pan-European FTSEurofirst 300 index rose 2.02 percent and MSCI's gauge of stocks across the globe gained 0.06 percent. 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.
  • Penn State Basketball: Nittany Lions dispatch Maryland in pivotal test

    Penn State Basketball: Nittany Lions dispatch Maryland in pivotal test

    The class is heavier on defense than offense, which is quite a thing to say about a class that has two five-star skill players. The nastiness along the defensive line, especially along the interior, likely won't come right away from this class.
    Congregant dies after stabbing spree at church service

    Congregant dies after stabbing spree at church service

    Moreno was being held at the Nueces County jail on Thursday on charges of murder and aggravated assault. The pastor who sustained life-threatening injuries was hospitalized and is in critical condition.

    NIH and opioid response get boost in Senate budget deal

    If the House approves the proposal, it moves to the White House for President Donald Trump's signature. The White House on Wednesday cheered a bipartisan, two-year budget deal announced by Senate leaders.
  • Stocks go on a wild ride, briefly sending Dow down 1600

    Stocks go on a wild ride, briefly sending Dow down 1600

    But inevitably investors took advantage of the sharp drop in prices to come back into the market, sending the key indexes higher. The sell-off wiped out the Dow and S&P 500 gains for the year , and left the Nasdaq barely in positive territory for 2018.
    LAPD Submits 3 More Cases of Alleged Sexual Assault by Harvey Weinstein

    LAPD Submits 3 More Cases of Alleged Sexual Assault by Harvey Weinstein

    Otherwise, the previous 10-year status period still is in effect, as is likely the reality in these three cases. The representative was not able to give details on the cases or the investigation at this time.
    Spice Girls US and UK Tour Now In The Planning

    Spice Girls US and UK Tour Now In The Planning

    The speculation is enough to send fans on Twitter into a frenzy over this anticipated surge of girl power. Again, the gang got back together to perform at the 2012 London Olympics Opening Ceremony.
  • Salman Khan Starrer Kick 2 To Release On This Day!

    Salman Khan Starrer Kick 2 To Release On This Day!

    Bollywood superstar Salman Khan has locked Christmas 2019 for the sequel to the Sajid Nadiadwala 2014 directorial Kick . The actor will soon begin his shoot for Bharat which is directed by Tiger Zinda Hai director, Ali Abbas Zafar.
    More than 300 child soldiers released in South Sudan

    More than 300 child soldiers released in South Sudan

    The children will have counselling support as part of the reintegration programme. Over 19,000 children are thought to have been recruited by all sides.
    Clinton Aides, Obama Appointees Fed Anti-Trump Dirt to Dossier Author

    Clinton Aides, Obama Appointees Fed Anti-Trump Dirt to Dossier Author

    Republicans have said that the failure to mention the Clinton campaign and DNC was a major omission from the FISA applications. The extent of the FBI's reliance on Steele's reports has become a central question dividing Republicans and Democrats.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.