U.S. stocks traded nearly 1 percent lower or more Thursday as continued strength in the yen against the U.S. dollar renewed concerns about global growth and the effectiveness of central bank policy. Currently 4.4% of the capital market is borrowed, according to Bloomberg, uncovered short-term positions amounting to trillions of dollars ... and if uncovered short-term positions collapse, the entire market will shudder.
The major averages held near session lows in afternoon trade, with the S&P 500 falling more than 1 percent to give up year-to-date gains. The Dow Jones industrial average fell 200 points with Goldman Sachs the greatest contributor to declines.
"The currency markets are dominating overall market moves and anytime you see an important move in one currency or another from a currency market it seems to cause nervousness in equity markets," said Quincy Krosby, market strategist at Prudential Financial. She attributed much of the late-morning declines in stocks to profit-taking in an overall risk-off environment.
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