SEVERE WX : Winter Weather Advisory View Alerts
STREAMING NOW: Watch Now

Global stocks plunge after Wall Street bloodbath

The stunning rout in U.S. stocks has spread to global markets.European stocks were hit on Tuesday, with benchm...

Posted: Feb 6, 2018 4:22 PM
Updated: Feb 6, 2018 4:23 PM

The stunning rout in U.S. stocks has spread to global markets.

European stocks were hit on Tuesday, with benchmark indexes in Paris, London and Frankfurt dropping 2%.

Japan's Nikkei nosedived 4.7%, while Hong Kong's Hang Seng suffered a loss of 5.1%.

Those sharp falls came after a brutal trading session in U.S. markets on Monday. The Dow closed down 1,175 points, or 4.6%. It was by far the index's biggest ever point decline for a single trading day.

U.S. stocks swung wildly in early trade on Tuesday.

Related: This is why the Dow is plunging

The market turmoil began early last week but has now intensified.

"Traders are getting nervous there is more to come," said Greg McKenna, chief market strategist at currency trading platform AxiTrader.

Selling on global stock markets has ramped up because of expectations the U.S. Federal Reserve could increase interest rates more quickly than previously thought. Higher interest rates can weigh on companies' earnings and wreak havoc in bond markets.

The growing concerns about the pace of interest rate hikes came after U.S. jobs data on Friday showed wages were growing at their fastest pace since 2009. That's led to fears that inflation -- which has been unusually low in recent years -- could be about to make a big comeback.

Paul Donovan, global chief economist at UBS Wealth Management, said that investors should take a longer view.

"The significance of equity market losses is best viewed against the calm of past months. This is a rather abrupt reminder of what volatility looks like," he said. "Nothing has changed in economic terms."

Related: Market fear is back in a big way

The worries arrived at a time when the Dow and many other major stock indexes were trading near record highs. That had led some experts to warn that markets were overdue for a correction.

The sell-off in Japanese stocks was exacerbated Tuesday as investors flocked to the yen, which is often viewed as a safe haven during periods of market panic, said Jingyi Pan, a strategist at stockbroker IG Group.

A stronger yen is bad news for profits at big Japanese exporters.

The Nikkei has been one of Asia's strongest performing indexes lately, but its plunge this week has now erased all of its gains for the year so far.

-- Charles Riley and Daniel Shane contributed to this report.

Lafayette
Mostly Cloudy
32° wxIcon
Hi: 34° Lo: 28°
Feels Like: 27°
Kokomo
Partly Cloudy
28° wxIcon
Hi: 31° Lo: 24°
Feels Like: 28°
Rensselaer
Cloudy
28° wxIcon
Hi: 33° Lo: 27°
Feels Like: 28°
Lafayette
Partly Cloudy
32° wxIcon
Hi: 34° Lo: 28°
Feels Like: 27°
Danville
Mostly Cloudy
29° wxIcon
Hi: 35° Lo: 29°
Feels Like: 29°
Frankfort
Cloudy
28° wxIcon
Hi: 33° Lo: 28°
Feels Like: 21°
Frankfort
Mostly Cloudy
28° wxIcon
Hi: 32° Lo: 26°
Feels Like: 21°
Monticello
Partly Cloudy
28° wxIcon
Hi: 33° Lo: 27°
Feels Like: 28°
Monticello
Mostly Cloudy
28° wxIcon
Hi: 35° Lo: 28°
Feels Like: 28°
Logansport
Partly Cloudy
28° wxIcon
Hi: 32° Lo: 25°
Feels Like: 28°
Heaviest precipitation Monday-Monday night....
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 608519

Reported Deaths: 9693
CountyCasesDeaths
Marion840461335
Lake45349684
Allen32803548
Hamilton29394315
St. Joseph27380381
Elkhart24404345
Vanderburgh19411249
Tippecanoe17970138
Johnson15069295
Porter14783169
Hendricks14401248
Madison10965221
Vigo10726181
Clark10677144
Monroe9383110
Delaware9116134
LaPorte9065163
Howard8236144
Kosciusko806983
Warrick672999
Hancock6697104
Bartholomew6484100
Floyd6428110
Wayne6136162
Grant5991115
Dubois555579
Boone551168
Morgan541295
Henry507864
Marshall503984
Cass483263
Dearborn479845
Noble473059
Jackson425047
Shelby417581
Lawrence391079
Clinton373043
Gibson370359
Harrison348144
DeKalb347164
Montgomery345754
Knox335639
Miami321444
Steuben313745
Whitley307326
Wabash303251
Adams300936
Ripley298445
Putnam296850
Huntington291659
Jasper289034
White273243
Daviess270474
Jefferson263338
Decatur247683
Fayette247148
Greene239862
Posey239328
Wells236051
LaGrange228862
Scott225339
Clay222532
Randolph213548
Jennings198936
Sullivan192333
Spencer191321
Washington186423
Fountain184027
Starke175443
Jay167623
Owen165737
Fulton164030
Orange159534
Carroll158015
Rush155118
Perry154229
Vermillion149134
Franklin148333
Tipton132332
Parke13078
Pike116926
Blackford111022
Pulaski97037
Newton90921
Brown88035
Benton86610
Crawford7999
Martin73713
Warren6817
Switzerland6615
Union6287
Ohio4907
Unassigned0376

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events