Markets Right Now: Stocks struggle to stabilize after tumult

Specialist John McNierney right works with traders at his post on the floor of the New York Stock Exchange Friday Feb. 9 2018

Specialist John McNierney right works with traders at his post on the floor of the New York Stock Exchange Friday Feb. 9 2018

The stock dropped $27.21, or 30.9 percent, to $60.83. The last bear market was during the 2008 financial crisis.

FedEx and UPS dropped more than 1 percent after the Wall Street Journal reported Amazon.com Inc will be launching its own delivery service.

Stocks had plunged 4 percent on Thursday, sending the Dow and the S&P more than 10 percent below their record highs on January 26 and adding to the sense that rising USA government bond yields had begun a major correction to nine years of near uninterrupted gains for Wall Street.

"A lot of high volume was happening in the S&P trading in the last hour of trading".

For a while Friday, it was anybody's guess whether the week-long sell-off would ease or worsen.

Other Asian markets also slumped as the Dow entered "correction" territory for the first time in two years.

USA stocks moved sharply higher in early trading Friday, recouping some of the ground lost a day earlier when indexes plummeted, deepening a weeklong sell-off that knocked the market into a "correction" for the first time in two years. Eastern Time. The Dow gained 282 points, or 1.2 percent, to 24,142.

"We may have seen the worst, but it's too early to say for sure".

The S&P 500 shed 58 points, or 2.2 percent, to 2,620 as of 1 p.m. The Nasdaq composite fell 274.82 points, or 3.9 per cent, to 6,777.16. They're also now all in the red for the year. While U.S. companies mostly did well at the end of 2018, a number of them had a weak finish to the year.

The price of gold rose $4.40, or 0.3 per cent, to $1,319 an ounce.

Bond prices rose. The yield on the 10-year Treasury fell to 2.80 percent from 2.83 percent late Thursday.

After hitting a high two weeks ago, US stocks started to tumble last week after the Labor Department said workers' wages grew at a fast rate in January. That's good for the economy, but investors anxious it will hurt corporate profits and that rising wages are a sign of faster inflation. European exchanges also headed south on Thursday. Once volatility spiked, it led to huge losses for the investments, which may have exacerbated the market's swings. The stock rose $4.49 to $31.40.

The Nikkei 225 in Japan meanwhile, has finished this week some 8% lower than it began it, the biggest weekly fall for two years. Many market watchers have been predicting a pullback, saying stock prices have become too expensive relative to company earnings.

The market, now in its second-longest bull run of all time, had not seen a correction for two years, an unusually long time.

Bond prices didn't move much. As of January 26, the S&P 500 traded at 18.6 times its expected earnings - a popular measure of stocks' value - compared with a median level of 15.2 since 2000.

The prospect of ballooning deficits also stoked jitters among investors this week after Congress agreed to a $400 billion budget deal just weeks after voting to slash taxes. Inflation can also send bond yields higher, which makes it more expensive for individuals, companies and even the US government to borrow money.

The market's reversal came just as Jerome Powell took over as Federal Reserve Chairman.

In Europe, markets were unnerved on Thursday by the Bank of England's indication that it could raise its key interest rate in coming months due to stronger global economic growth. Employers are hiring at a healthy pace, with unemployment at a 17-year low of 4.1 per cent.

Even so, Wall Street analysts note that the outlook for corporate America and the broader global economy remains positive. And major economies around the world are growing in tandem for the first time since the Great Recession. The housing industry is solid. Oil has not been below $60 a barrel since December 28. Germany's DAX lost 2.6 percent while France's CAC 40 ended down 2 percent.

Meanwhile, the UK's blue-chip index closed 1.49 per cent lower at 7,170.69.

The market didn't get much help Thursday from company earnings reports, several of which disappointed investors. The euro dipped to $1.2231 from $1.2263.

The early rally in US stock indexes followed a broad slide in global markets.

That should be welcome, as it means the world economy is returning to more normal conditions after an extraordinary period of ultra-cheap money - which was a boon for the stock market - but it means there are likely to be more sharp sell-offs and, potentially, less spectacular returns than those enjoyed in recent years.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.