Selloff Continues: Dow Plummets More Than 1000 Points; S&P Sinks 3.75 Percent

Selloff Continues: Dow Plummets More Than 1000 Points; S&P Sinks 3.75 Percent

Selloff Continues: Dow Plummets More Than 1000 Points; S&P Sinks 3.75 Percent

The fresh volatility came a day after the benchmark S&P 500 and the Dow industrials confirmed they were in correction territory, both falling more than 10 percent from January 26 record highs. That bear market caused the S&P 500 to lose almost half its value before its pullback ended 2½ years later.

The market's gauge of volatility, the CBOE Volatility Index, opened at a relatively high of 32.18 on Friday. Find us on Facebook too!

The broad-based S&P 500 sank 3.8 per cent to 2,581.00, while the tech-rich Nasdaq Composite Index plunged 3.9 per cent to 6,777.16.

Benchmark Treasury yields fell in volatile trading, though investors may still be wary of holding positions over the weekend.

Rising yields continued to be a factor causing losses in USA market indexes.

On Friday, benchmark 10-year notes last rose 10/32 in price to yield 2.8149 percent, from 2.849 percent late on Thursday. Yields have since retreated, however, to 2.82 percent. "The trigger has been the really fast rise in bond yields", said Evan Brown, director of asset allocation at UBS Asset Management.

Some of the market's biggest winners over the past year were leading the market higher.

Intensifying worries over the impact of rising inflation piled pressure on to markets across the world.

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The Dow Jones industrial average fell more than 500 points on Thursday afternoon - but that didn't trigger any trading halts.

This also puts it in what is known on Wall Street as a "correction".

Thursday's losses were steady, rather than the sharp falls seen over the past few days, however. And it takes an average of just over another two years for the market to recover its lost ground.

After a sharp loss Wednesday, benchmark USA crude lost 64 cents, or 1 percent, to $61.15 a barrel in NY.

White House spokesman Raj Shah expressed concern about the drop in stocks, but continued to point to robust employment data and corporate earnings as signs that "long term fundamentals demonstrate a healthy economy".

Yelp fell 7.3 percent after a host of brokerages cut their price targets on the consumer review website operator's stock following quarterly results. Other trusts that look cheap include Utilico Emerging Markets, on a 13.3 per cent discount versus a 10 per cent one-year average, and Fidelity Asian Values, which is offering a discount of 9.4 per cent versus a one-year average figure of 4 per cent. On the Nasdaq, 1,981 issues rose and 438 fell.

Chinese equities were hurt by the drop in global shares and by traders closing positions before the Lunar New Year holidays starting next week. The S&P 600 Index closed at 918.54 for a gain of 0.13 points or 0.01%.

Some say the fluctuations are because of the good news, with fears that an overheated economy and nascent inflation will push the Federal Reserve to raise rates.

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