Originally published by Rivkin Securities
Last night’s trading session ended with fairly broad-based losses across the board with tech companies Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) down 6.2 per cent and 5.4 per cent respectively and the likes of Boeing (NYSE:BA), Visa (NYSE:V) and Nike (NYSE:NKE) all tumbled more than 4 per cent. This sell-off follows significant stock gains in the third quarter from strong corporate earnings and solid US economic data – it looks like renewed worries about trade wars and pressure from 10-year US treasury bonds have rattled investors.
The Dow finished 3.2 per cent lower with the S&P 500 slumping 3.3 per cent and the tech heavy Nasdaq falling 4.1 per cent. This follows news of the international monetary fund slashing its global growth forecast on worries of trade wars and weakness in emerging markets.
Australian shares finished the session slightly higher on Wednesday due to a rebound in healthcare stocks from two day losses. SPI futures are down 109 points to 5914 with the S&P/ASX 200 Index expected to follow suit. with the advance of US treasury yields, fears of US and China trade relations and big drops in the share value of popular tech companies seems to have shaken investors confidence in equities.