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Nikkei plunges by over 1000 points in afternoon trading

11 October 2018

Oliver Pursche, vice chairman and chief market strategist at Bruderman Asset Management, in NY, said: "The big concern isn't really what third quarter earnings numbers are, but really what the outlook for the fourth quarter and first quarters are".

"We've scratched our heads about the rise in stocks for the past 18 months".

The S&P 500 is on track for its fifth drop in a row and its biggest decline since April. The Nasdaq's 2-percent drop pulled it 7.1 percent away from its high.

The Dow Jones Industrial Average fell 831 points Wednesday and the Nasdaq composite, which has a high concentration of technology companies, had its biggest loss in more than two years. The Russell 2000 index of smaller-company stocks shed 46.45 points, or 2.9 percent, to 1,575.41.

Wall Street was hammered on Wednesday as investors dumped high-growth names such as technology and FAANG stocks, with rising Treasury yields and trade-related worries sapping their risk appetite.

That's helped make technology stocks more volatile in the last few months.

Roberts described the fall as a slight correction and said he hoped markets would recover similar to what had happened in February and March this year after a dip in the markets also sparked by rising bond yields. Microsoft gave up 3.3 percent.

The Dow plunged almost 832 points on Wednesday, the third-worst point decline in history.

Tom Cahill of Ventura Wealth Management said investors were also unnerved by remarks from luxury company LVMH of a crackdown on some goods in China amid the country's bitter dispute with the United States. Boeing lost 4.7 per cent to US$367.57 and Alphabet, Google's parent company, gave up 4.6 per cent to US$1092.16.

Michael strengthens into Category 2 hurricane
Any rain from Michael itself would be extra on top of that and so I'll be tracking both systems closely over the next few days. Hurricane Michael became a Category 3 storm with 120 miles per hour maximum sustained winds on October 9.

The Aussie is buying 70.73 United States cents, up from 70.13 U.S. cents at Wednesday's close.

The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy.

Benchmark U.S. 10-year Treasury notes rose late in the day, pushing yields down to 3.1931 percent.

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

Roberts predicted volatility in the markets would continue but said that was more a return to normal levels after a low level of volatility.

Adams, of Bloomberg Intelligence, said investors have concerns about their future profitability, too.

"Amazon recently announced they were increasing wages, Facebook is spending a ton on security", she said. The broader S&P 500 was down by even more, and had its worst day in more than six months.

Meanwhile struggling retailer Sears was in focus as the Wall Street Journal reported that it was preparing to file for bankruptcy.

Oil firms Hess Corp and Marathon Oil fell around 7 per cent as Chevron dropped 3 per cent ahead of the third-quarter earnings season. It was the first stock market correction of more than 10% in four years, according to USA Today. Over the years, Sears has closed hundreds of stores and sold several famous brands.

Nikkei plunges by over 1000 points in afternoon trading