Breaking News
0

GLOBAL MARKETS-Stocks slide to 3-month low on tech stocks plunge, rising U.S. interest rates

Stock MarketsOct 11, 2018 07:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. GLOBAL MARKETS-Stocks slide to 3-month low on tech stocks plunge, rising U.S. interest rates

(Adds close of U.S. markets)

* S&P500 index sees biggest one-day fall since Feb.

* Tech stocks tumble on slowing demand concerns

* Long-dated Treasury yields slip as investors seek safety

* Sterling strengthens on hopes for Brexit deal

By Herbert Lash

NEW YORK, Oct 10 (Reuters) - Stocks on major world markets slid to a three-month low on Wednesday, with the benchmark S&P500 stock index falling more than 3.0 percent, its biggest one-day fall since February.

Technology shares tumbled on fears of slowing demand, while bond yields ended lower after seeing multi-year highs earlier this week.

Major equity indexes in Europe fell more than 1.0 percent, also pulled down by technology shares, and gold prices inched up as some investors sought refuge in the metal.

"The S&P 500 is looking very weak and negative and that is putting fear into investors," said Michael Matousek, head trader at U.S. Global Investors. "With the markets going down people are increasing their allocation towards gold."

On Wall Street, the Philadelphia Semiconductor index .SOX tumbled 4.46 percent after Swiss vacuum valve maker VAT Group VACN.S said demand was softening from chip equipment makers. the tech sector's worst performers in Europe, Austrian chipmaker AMS AMS.S fell 5.9 percent and STMicroelectronics STM.PA closed down 5.8 percent.

Benchmark U.S. 10-year Treasury notes US10YT=RR rose late in the day, pushing yields down to 3.1931 percent. Yields on 3-year notes have recently traded just above 3.0 percent, providing long-absent competition for investment returns with equities.

The rise in U.S. Treasury yields has been bolstered by good U.S. economic data that has reinforced expectations of multiple rate hikes over the next 12 months by the Federal Reserve. and bonds traditionally have been in a tug of war for capital, but for the past 10 years bonds have had one arm tied behind their back, said Jack Ablin, chief investment officer and founding partner at Cresset Wealth Advisors in Chicago.

"Short-term bonds are getting to be a compelling place to hang out," he said. "This orphan status that equity markets have enjoyed for the last 10 years is disappearing and finally getting some competition from the bond market."

The Dow Jones Industrial Average .DJI fell 831.83 points, or 2.2 percent, to 25,598.74. The S&P 500 .SPX lost 94.66 points, or 3.29 percent, to 2,785.68 and the Nasdaq Composite .IXIC dropped 315.97 points, or 4.08 percent, to 7,422.05.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell percent, its biggest single-day fall since February. The pan-European FTSEurofirst 300 index .FTEU3 of leading regional shares closed down 1.57 percent.

The euro and sterling rose, underpinned by optimism for a Brexit deal, while the U.S. dollar lost ground against a basket of currencies even as U.S. yields hovered near multiyear peaks.

European Union Brexit negotiator Michel Barnier signaled progress on a deal with the UK over its withdrawal from the bloc. is more optimism that they will find some agreement between Britain and the European Union before Brexit," said Steve Englander, global head of G10 FX research at Standard Chartered (LON:STAN) Bank in New York.

The dollar index .DXY fell 0.17 percent, with the euro EUR= up 0.25 percent to $1.1518. The Japanese yen JPY= strengthened 0.53 percent versus the greenback at 112.36.

Oil prices fell more than 2 percent as U.S. stocks plunged, even though energy traders worried about shrinking supply from Iran due to U.S. sanctions and kept an eye on Hurricane Michael, which closed nearly 40 percent of U.S. Gulf of Mexico output.

U.S. crude CLc1 settled down $1.79 at $73.17 per barrel and Brent LCOc1 fell $1.91 to settle at $83.09.

U.S. gold futures GCv1 settled up $1.9, or 0.16 percent, at $1,193.4.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ IMF global GDP growth

https://tmsnrt.rs/2ykjmXG CNH

https://reut.rs/2ysJRdO 10-yr US yields vs S&P 500 in 2018

https://tmsnrt.rs/2ytikZs

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

GLOBAL MARKETS-Stocks slide to 3-month low on tech stocks plunge, rising U.S. interest rates
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
jared dickhead
jared dickhead Oct 11, 2018 8:20
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Get out your f@#king popcorn people it's going to be a blood bath today..
Reply
0 0
Julia Summers
Julia Summers Oct 11, 2018 8:20
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not yet. Rebound today,
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email