The Dow Jones Industrial Average plunged about 2%, or more than 450 points, to its lowest level in 14 months. The Nasdaq Composite shed 1.6% and briefly dipped into a bear market, defined as a fall of more than 20% from recent peaks, for the first time since the financial crisis. The S&P 500 fell 1.6%.
Technology shares, which had led the latest bull run, were among the biggest losers, with Amazon, Apple, and Netflix falling at least 2% each. Google parent-company Alphabet was nearly 1% lower. After being called "toxic" by Citron Research, shares of Twitter sank more than 11%.
A bruising sell-off had started Wednesday after the Federal Reserve raised its benchmark interest rate a quarter percentage point and signaled it would take a tentative approach to setting monetary policy next year.
"Yesterday, there is no doubt that markets were expecting a bailout from the Fed—and threw a tantrum when they didn’t get it," said Brad McMillan, chief investment officer of Commonwealth Financial Network. "Powell put the markets on notice that the Fed will be much less willing to shape monetary policy in order to support asset prices."
The VIX — a measure of expected volatility — jumped more than 14% to at 29.22, its highest level since February. Also known as Wall Street's "fear index," the Cboe Volatility Index tends to rise when stocks are down.
Not helping the mood, oil prices fell to their lowest level in more than a year, even after the US reported a drawdown in inventories for a third straight week. West Texas Intermediate was trading just under $46 per barrel, and Brent around $54.70. Worries about oversupply have helped send prices deep into bear territory, down nearly 40% from their October highs.
Source: BI
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.