Dow Jones Industrials Sink 800-plus Points

New York City. With bond prices dropping interest rates have been surging resulting in the Dow Jones Industrials Average falling over 200 poin

New York City. With bond prices dropping interest rates have been surging resulting in the Dow Jones Industrials Average falling over 200 poin

Oil prices fell more than 2 percent as U.S. stocks plunged, even though energy traders anxious about shrinking supply from Iran due to U.S. sanctions and kept an eye on Hurricane Michael, which closed almost 40 percent of U.S. Gulf of Mexico output.

Tech leaders Amazon (AMZN), Facebook (FB) and Netflix (NFLX) all helped lead the market lower Wednesday while stodgier companies like food companies Smucker (SJM) and General Mills (GIS), gold miner Newmont (NEM) and bargain retailers Dollar General (DG) and Dollar Tree (DLTR) finished the day higher.

US stocks are falling again a day after their biggest drop since February.

"The -4.2 percent drop in the S&P 500 over the past five days has been triggered in part by fears over corporate earnings as trade uncertainties, rising input costs and higher interest costs start to bite", said economist Louis Gave of Gavekal Research in a report.

Luxury retailers tumbled. Tiffany plunged 10.2 percent to $110.38 and Ralph Lauren fell 8.4 percent to $116.96.

U.S. government bonds resumed a selloff after rising to multi-year highs last week, with the 2-year yield rising to 2.906%, its highest level since June 2008.

Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said the stocks have become more volatile in the last few months because investors have concerns about their future profitability. Investors see many of these countries as being vulnerable to higher US interest rates, which can pull away investment dollars.

"The stock market in the USA has started to take notice, and will continue to, particularly if the speed at which rates rise becomes alarming", Jeffrey Gundlach, chief executive of Doubleline Capital, told Reuters last week. "Semiconductors have the most exposure to China out of segments in the S&P 500". The Kospi in South Korea fell 3.6 percent to 2,148.97.

The Dow Jones Industrial Average fell 430 points Wednesday morning, or around 1.6 percent.

"People fear building prices into the system, both from China trade problems, other tariffs the US has put into place, wage pressure, and today there is a little bit of concern about what the Hurricane in Florida could do to energy prices".

USA crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09.

Wholesale gasoline shed 2.7 per cent to $2.02 a gallon. Natural gas rose 0.6 per cent to $3.28 per 1,000 cubic feet.

At 11:22 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 123.08 points, or 0.79 per cent, at 15,392.22. Silver dipped 0.5 per cent to $14.33 an ounce.

The CAC 40 in France dropped 2.1 percent, Germany's DAX lost 2.2 percent and the FTSE 100 in London fell 1.3 percent.

Among the tech sector's worst performers in Europe, Austrian chipmaker AMS fell 5.9 percent and STMicroelectronics closed down 5.8 percent.

Stocks from emerging markets were also hard hit. Brazil's Bovespa lost 2.5 per cent and the Merval in Argentina sank 2.2 per cent. The euro rose to $1.1525 from $1.1496.

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