Stocks are getting creamed as a volatile week rages on

Stocks are getting creamed as a volatile week rages on

Stocks are getting creamed as a volatile week rages on

Even with the two-day bloodletting, the Dow is still up 21 per cent in the past 12 months and 272 per cent since the beginning of the bull market in 2009. The NASDAQ Composite index is nearing a correction - a 10 percent drop, falling 9.8 percent from its January 26 high.

The Dow Jones industrial average lost 1,032.89 points, or 4.1 percent, to 23,860.46. Treasury yields swung before nudging higher.

By 12:54 p.m. ET it was down 1.7 percent on the day and 11.1 percent since highs hit on January 26.

The dive extends a sell-off that started last week, as investors started to worry that inflation might rise more quickly than expected, leading policymakers to raise interest rates.

Some of the market's biggest winners over the past year were leading the market higher. "They could be in full panic mode right now".

Bond prices fell. The yield on the 10-year Treasury note rose to 2.85 percent.

Wall Street is having another rocky day. "Is the bond market telling us something we don't know?"

The Dow Jones fell 1,032 points on Thursday, the second decline of more than 1,000 points for the index in a week.

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"There are going to be people that are going to be selling into any kind of strength and then you are going to have some value-conscious investors taking advantage of these multiple 100-point drops", said Alan Lancz, president of Alan B. Lancz & Associates, an investment advisory firm in Toledo, Ohio.

With Wall Street's quarterly earnings season more than half-way through, about three-fourths of the S&P 500 companies that have reported so far have beaten profit expectations, above the 72 percent beat-rate in the past four quarters.

The VIX, a measure of market volatility, jumped 15% on Thursday. The first such circuit breaker kicks in when the S&P 500 falls at least 7%, what's called level 1.

New York Federal Reserve President Bill Dudley told Bloomberg News on Thursday that if the USA economy keeps getting stronger the central bank may be justified in raising rates four times this year.

The recent turmoil comes from fears of inflation, which could rise this year as tax cuts take effect, experts say.

Volatile high-volume trading conditions in NY moved stocks wildly on Tuesday, with the Dow Jones closing up 567 points, or 2.3%, at 24,912. But such calm is unusual, and stocks overheated. Neither index has closed in a correction in two years.

In other corporate news, Chinese smart wearable device maker Huami Corporation rang the New York Stock Exchange (NYSE) opening bell Thursday in celebration of its Initial Public Offerings, notching the first NYSE IPO of a Chinese company this year. The implications include rising interest rates, the possibility of inflation and surging government deficits.

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