BREAKING NEWS Off-duty Boswell Town Marshal dies in single-vehicle crash Full Story
SEVERE WX : Flood Warning View Alerts

Another wild sell off: Dow sinks 546 points

The stomach-churning market scare continues.The Dow tumbled 546 points, or 2.1%, on Thursday followin...

Posted: Oct 12, 2018 9:29 AM
Updated: Oct 12, 2018 9:29 AM

The stomach-churning market scare continues.

The Dow tumbled 546 points, or 2.1%, on Thursday following another rollercoaster session. The index briefly turned positive during morning trading before succumbing to heavy selling pressure. At one point the Dow was down 699 points. The Dow has shed 1,378 points over the past two days.

Banking, finance and investments

Business, economy and trade

Economic indicators

Economy and economic indicators

Financial markets and investing

Securities trading

Stock indexes

Stock markets

Technology

Company activities and management

Company earnings

Financial performance and reports

Financial results

Companies

Nasdaq

Asia

China

Continents and regions

East Asia

Economic conditions

Inflation

International trade

North America

The Americas

Trade and development

United States

Wall Street

Donald Trump

Political Figures - US

Economic policy

Trade regulation and policy

Trade wars

The mood on Wall Street was only slightly calmer than Wednesday's 832-point nosedive.

The S&P 500 closed down 2.1%, notching its sixth-straight losing session. It's the longest slump for the broad index since just prior to President Donald Trump's election more than two years ago.

The Nasdaq briefly tumbled into a correction, signaling a 10% decline from previous highs. But the index climbed out of correction territory and closed down 1.3%.

All three major indexes have lost more than 5% this week. That hasn't happened since March.

"This kind of washout doesn't get accomplished in a day. Even though yesterday felt traumatic, it tends to be a three-day process," said Art Hogan, chief market strategist at B. Riley FBR.

The VIX volatility index touched its highest level since February.

One positive is that unlike on Wednesday, the market did not close on the lows of the day. The rebound was helped by fresh reports that President Donald Trump and Chinese leader Xi Jinping have agreed to meet next month at the G-20 summit. Such a meeting could ease fears that the US-China trade war will hurt corporate profits and slow the US economy.

Tech stocks have come under fire because they are some of the riskiest and most expensive parts of the market. Investors fear how these momentum names will hold up in a downturn, particularly as interest rates spike. A proxy for the tech sector had its sharpest plunge in seven years on Wednesday.

"Halloween started early this month for investors," Ed Yardeni, president of investment advisory firm Yardeni Research, wrote to clients.

The afternoon sell-off comes even though a new report showed that consumer prices rose less than expected in September.

Stocks have turned sharply south in large part because investors are concerned about rising interest rates. As the Federal Reserve raises rates to prevent runaway inflation, investors have been getting out of bonds, driving down their price and driving up their yields. Suddenly, the return on bonds has become competitive with some stocks — particularly risky tech stocks.

Rising interest rates also increase borrowing costs for households and businesses, eating into corporate profits.

Inflation, tariff worries

Some US companies have recently warned about pain from rising costs. Paint company PPG Industries (PPG) spooked investors on Tuesday by saying it's paying more for chemicals, oil and shipping. Fastenal (FAST), another industrial company, suffered a surprise decline in margins due to spiking freight costs. And the company warned of potential trouble from the US tariffs on China.

Wall Street is getting increasingly nervous about the ongoing trade war between the United States and China. While US growth has remained on track, China's economy is showing signs of a slowdown. Citing the trade fight, the IMF on Monday lowered its 2019 growth projections for both the US and China.

"The downgrade from the IMF underscores this is a very real threat. It's really a gamechanger," said Kristina Hooper, global market strategist at Invesco.

If Trump and Xi officially announce a meeting at the G20 summit, it could help tamp down market fears about the trade war.

Hogan said the problem is that investors "don't see an exit on the trade war highway. We're escalating our rhetoric with China."

Are stocks oversold?

Global markets lost ground overnight. Stock indexes in the United Kingdom, Germany and France all fall by more than 1%. Benchmark indexes in Shanghai and Tokyo closed down 5.2% and almost 4%, respectively. Hong Kong's market was down over 3%.

There were plenty of other jitters. Gold, which often rises during times of stress, climbed nearly 3%. That hasn't happened since June 2016. The Fear & Greed Index, a CNN Business gauge of market sentiment, is flashing "extreme fear." Just a month ago the index was comfortably in "greed" territory.

However, Yardeni is optimistic the market will rebound because corporate profits are robust and no recession is in sight.

"We remain bullish on the outlook for earnings, and expect the market to recover and make new highs going into next year," Yardeni wrote.

Lafayette
Cloudy
57° wxIcon
Hi: 62° Lo: 41°
Feels Like: 57°
Kokomo
Cloudy
58° wxIcon
Hi: 62° Lo: 39°
Feels Like: 58°
Rensselaer
Mostly Cloudy
48° wxIcon
Hi: 57° Lo: 36°
Feels Like: 41°
Lafayette
Cloudy
57° wxIcon
Hi: 57° Lo: 40°
Feels Like: 57°
Danville
Cloudy
54° wxIcon
Hi: 59° Lo: 41°
Feels Like: 54°
Frankfort
Cloudy
55° wxIcon
Hi: 60° Lo: 43°
Feels Like: 55°
Frankfort
Cloudy
55° wxIcon
Hi: 61° Lo: 41°
Feels Like: 55°
Monticello
Cloudy
52° wxIcon
Hi: 61° Lo: 40°
Feels Like: 52°
Monticello
Cloudy
52° wxIcon
Hi: 63° Lo: 39°
Feels Like: 52°
Logansport
Cloudy
55° wxIcon
Hi: 61° Lo: 37°
Feels Like: 55°
March coming in like a lamb Monday...
WLFI Radar
WLFI Temps
WLFI Planner

WLFI is promoting fire safety with FREE smoke detectors

 WLFI and several local fire departments are helping with your fire safety this winter. CLICK HERE. 

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 660942

Reported Deaths: 12556
CountyCasesDeaths
Marion905601638
Lake48352874
Allen35762635
Hamilton32026396
St. Joseph29865511
Elkhart25350414
Vanderburgh21225377
Tippecanoe19977200
Johnson16319356
Porter15938269
Hendricks15801300
Clark11928180
Madison11730316
Vigo11578229
Monroe10312161
Delaware9830179
LaPorte9755196
Howard9047196
Kosciusko8549109
Bartholomew7440147
Warrick7403150
Hancock7394130
Floyd7189169
Wayne6630191
Grant6422157
Morgan6075125
Boone607288
Dubois5895111
Dearborn546866
Cass543399
Henry541793
Marshall5417104
Noble508578
Jackson464366
Shelby460190
Lawrence4179111
Gibson400881
Harrison398763
Clinton395053
Montgomery386283
DeKalb384678
Miami356763
Knox356485
Whitley348936
Huntington342376
Steuben337855
Wabash330876
Putnam329459
Ripley326861
Adams322549
Jasper315443
White297252
Jefferson294473
Daviess285396
Fayette271456
Decatur270488
Greene261280
Posey260531
Wells257674
Scott249950
Clay240844
LaGrange240770
Randolph225576
Spencer217030
Jennings214744
Washington210427
Sullivan203139
Fountain201142
Starke187951
Owen181953
Fulton178237
Jay177628
Carroll176418
Perry173235
Orange171150
Rush164322
Vermillion160242
Franklin159335
Tipton146141
Parke138815
Pike127432
Blackford120627
Pulaski106444
Newton96531
Brown94939
Benton91813
Crawford90313
Martin80014
Warren75513
Switzerland7537
Union67110
Ohio53211
Unassigned0431

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