Posted on 10/10/2018 12:37:22 PM PDT by BradtotheBone
Stocks sank on Wednesday as a steep decline in tech shares and worries of rapidly rising rates sent Wall Street on pace for its worst day in six months.
The Dow Jones Industrial Average traded more than 600 points lower as Intel and Microsoft fell more than 2.5 percent each. The Nasdaq Composite plummeted 3 percent.
The S&P 500 dropped 2.5 percent, with the tech sector underperforming. The broad index was also headed for a five-day losing streak — which would be its longest since late 2016 — and fell below its 50-day moving average, a widely followed technical level.
Both the Dow and S&P 500 were also on pace for their worst day since March.
The major indexes have fallen sharply this month. For October, the S&P 500 and the Dow are down more than 3.6 percent and 2.5 percent, respectively. The Nasdaq, meanwhile, has lost more than 6.5 percent.
Rising rate fears and a pivot out of technology stocks have made it a rough last few days. The Dow has dropped four of the last five sessions, losing nearly 900 points over that span.
Shares of Amazon declined nearly 4 percent on Wednesday, while Netflix slid 6.3 percent. Facebook and Apple also fell more than 2 percent each.
"People are getting out of the high-flying tech names right now," said Larry Benedict, CEO of The Opportunistic Trader. "I think people are under-hedged; there could be more pain ahead."
(Excerpt) Read more at cnbc.com ...
Meanwhile, Google (and Amazon) keeps chugging along.
Well THAT’S a pin in my balloon.
The Fed was Political under Obama.
They purposely left Interest Low to help him, no doubt.
Wow, you just described disintermediation between investment vehicles. A 1960’s finance 101 flashback!
But only when Republican races will be affected by it...
Correct. The market is due for a correction in any event. I moved mostly out of stocks a couple months back.
Down more than 800 points at close.
Trump needs to get that idiot he picked fir the Fed Reserve
stopping this .
Who the heck picked this snake .
He has set off two the market drops in one year .
Fire the guy .
“WS is full of Dems and Soros who had his hand in the 2008 crash . This smells . “
I totally agree. The ends justify the means. The dems will do anything to regain power.
Where is he after he caused this mess today .
1. When the market goes down people call it a “correction”, but when it rallies for months on end, they never call that a “mistake”.
2. Ten year rates, that have nothing to do with the Fed, and are even possibly the opposite of the Fed’s policy, have spiked sharply. Tech companies constantly need new money. That money is getting more expensive. That hurts their earnings prospects.
3. 25% tariffs coming in January means that intermediate goods for a huge number of US domestic manufacturers are about to get very expensive. No one knows whether this will destroy demand or not, but it’s a legitimate worry. Tariffs may slam the brakes on growth when they fully kick in on Jan 1.
I agree. Some People are pulling some cash out in preparation for Christmas. Some are pulling it out until they know what happens in November.
Worried that the Democrats might win.
Give me a break. This market has been insane and 800 points is only a 3 percent drop. If we can finish the year above 25,000 I will be extremely impressed. It seems like just yesterday I watched it break 10,000.
Exactly. It’s October, the sell off season.
The guy spooked investors .
This is the third day of sell offs but the worst day yet. after he jacked up rates .
i think the guy is Dem plant .
He hides alot.
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