Sell-off in the stock market resumed on Thursday with volatility settling in, as the Dow fell sharply lower down over 1,000 points and the S&P 500 having gyrated between a low of 2,600 and 2,685 throughout the day finished down 100 points or close to -4% at close. The three major indexes were at two-month lows.
Today's 1,000 point swing follows Monday's same-point decline as interest rate fears intensify. US 10-Year Treasury yields rose close to four-year highs adding to sell-off pressure. Wednesday's rebound was swiftly reversed in trading today as market turbulence continues, reminding investors of a more normal state of play which is bull markets can swing wildly. The blue-chip index fell 1,032 or 4.15% to 24,860.46 propelling it technically into correction territory where there is a 10% decline from a stock high. The components all turned negative led by American Express down -5.63%, Intel -5.42% and Microsoft dropped -5.13%.
The S&P 500 five-day performance is -8.54%. None of its sectors made gains, among the sectors making the greatest losses were financials and consumer discretionary. Winners on the market-weighted index was Coty up +14.19% and Viacom added +7.21%. Nasdaq fell 274 points or -3.90%. Tesla stock came down to earth with a bump -8.73% after an enervating earnings report with sales meeting forecasts and losses under expectations. Analysts continued to be concerned about its Model 3 production.
- Dow 24,860.46 -4.15%
- S&P 500 2,581.08 -3.75%
- Nasdaq 6,777.16 -3.90%
- Russell 2000 1,472.63 -2.35%
- NYSE Composite 12,338.81 -2.75%
- Gold 1,320.0 +0.41%
- Oil WTI $60.32 -2.38%
Ramped up US production and inventories have added pressure to US crude oil which dropped for a fifth straight day. Gold made gains as investors sought safety from roiled equities.