Dow Tumbles 500 Points and Erases Gains From Prior Day’s Rally

Tiger Newspress2022-09-29

Stocks slumped Thursday, giving back some of the sharp gains seen in the previous session, as bond yields resumed their upward march.

The Dow Jones Industrial Average dropped 479.99 points, or 1.62%. The S&P 500 and Nasdaq Composite declined 2.18% and 3.03%, respectively.

A stronger-than-expected jobless claims report didn’t help sentiment, building on the notion that the Federal Reserve will keep doing aggressive rate hikes to fight inflation without concern it’s going to hurt the labor market.

The 10-year U.S. Treasury yield rebounded to trade at about 3.79%. A day prior, it posted its biggest one-day drop since 2020 after briefly topping 4%.

Apple shares fell 4.5% after Bank of America downgraded the tech stock to neutral from buy and slashed its price target, citing a weak consumer.

The moves followed a broad rally for stocks Wednesday, as the Bank of England said it would purchase bonds in an effort to help steady its financial markets and the cratering British pound. Sterling has stooped to record lows against the U.S. dollar in recent days.

It marked a stark shift from the aggressive tightening campaign many global central banks have undertaken to cope with surging inflation.

The Dow on Wednesday gained more than 500 points, or 1.9%, while the S&P 500 rose nearly 2% after hitting a new bear market low on Tuesday. Both indexes snapped six-day losing streaks.

“We are skeptical that the calmer mood in markets on Wednesday marks an end to the recent period of elevated volatility or risk-off sentiment. For a more sustained rally, investors will need to see convincing evidence that inflation is coming under control, allowing central banks to become less hawkish,” UBS’ Mark Haefele wrote in a Thursday note.

Wednesday’s rally put the major averages on pace for a losing week and their worst month since June. The Nasdaq Composite is leading the monthly losses, down about 8.4%, while the Dow and S&P are on pace to close 7% and 7.5% lower, respectively.

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Comments

  • blessed_1
    2022-09-30
    blessed_1
    A blip on wed
  • Success88
    2022-09-30
    Success88
    Thank 
  • robot1234
    2022-09-30
    robot1234
    Asia markets mixed after S&P 500 closes at new low for the year; China factory activity expands. Shares in the Asia-Pacific were mixed on Friday, the last day of the third quarter, following another sell-off on Wall Street overnight. China’s official factory activity data unexpectedly expanded in August, beating estimates.The Hang Seng index in Hong Kong rose 0.48% in early trade. Mainland China’s Shanghai Composite gained 0.16% in early trade, while the Shenzhen Component was marginally higher.In Japan, the Nikkei 225 slipped 1.54%, and the Topix index fell 1.18%. Australia’s S&P/ASX 200 lost 0.47%.The Kospi in South Korea declined 0.33% and the Kosdaq shed 0.16%. MSCI’s broadest index of Asia-Pacific shares outside Japan was marginally higher.U.S. stocks tumbled in Thursday’s ses
  • imteng87
    2022-09-30
    imteng87
    ok
  • PearlynCSY
    2022-09-30
    PearlynCSY
    Stock futures were up slightly Thursday evening following a sharp sell-off that brought the S&P 500 to a new 2022 low.Futures for the S&P 500 wereFutures for the S&P 500 were up 0.26%. The Dow Jones Industrial Average futures were up 0.17%. Nasdaq 100 futures were up 0.14%. The 2022 sell-off resumed in full force during regular trading on Thursday as investors weighed concerns over future rate-hiking decisions from the Federal Reserve and the impact on the market. Apple led Thursday’s decline, closing down 4.9% as the tech giant has faced reports of declining demand for its new products, specifically the iPhone 14 series. Bank of America also downgraded the tech giant, which pressured shares. At the end of regular trading on Thursday, the S&P 500 dropped 2.1% to 3,640.47. T
    • PearlynCSY: 
      Stocks fell in choppy trading Friday as Wall Street closed out a terrible week, month and quarter that brought the S&P 500 to a new 2022 low.
    • Go92: 
      buy
    • Joe1997: 
      Hh
    • chubzchubx: 
      okay
    • Heng12345: 
      A
  • Ytyt
    2022-09-30
    Ytyt
    Ok
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