US stocks plunge, sending Dow into the red for 2018

US stocks plunge, sending Dow into the red for 2018

That's just shy of what Wall Street calls a "correction", or a drop of 10 per cent or more from a peak. "Earnings have helped", said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in NY.

While U.S. economic growth kept apace despite trade wars, the same can not be said of U.S. corporate profit growth, as a slew of disappointing forecasts this earnings season showed how tariffs, rising wages and borrowing costs as well as jitters over geopolitical events are hurting companies.

"What makes the latest volatility more troubling is that it's been hard to identify one specific cause", Kerry Craig, global markets strategist at JPMorgan Asset Management, told Bloomberg. Analysts attributed Wednesday's sell-off to fears of economic weakness around the globe that could reduce demand for the products and services from USA companies.

Declining issues outnumbered advancing ones on the NYSE by a 2.68-to-1 ratio, while on Nasdaq a 2.13-to-1 ratio favoured decliners. That helped send the S&P 500 to a new all-time high in September, erasing the losses from its "correction" in February. The Nasdaq composite added 185 points, or 2.6 percent, to 7,393.

The tech-heavy index closed up 3%-its biggest one-day gain since March 26-coming off a 4.4% slide that marked its worst session since August 2011. AT&T dropped 6.2 percent.

It comes after Google parent Alphabet Inc today missed analysts' quarterly revenue estimates for the first time in at least two years.

Boeing jumped 3.3 percent after beating analysts' earnings forecasts.

Twitter soared 12.1 percent to $30.85 and electric vehicle maker Tesla jumped 7.8 percent to $311 after releasing their quarterly reports, while video game maker Take-Two vaulted 7.9 percent to $1219.75 after strong reviews for its latest game, "Red Dead Redemption 2".

Amazon's revenue fell short of expectations and its fourth-quarter guidance disappointed, sending shares into a bear market, down more than 20% from their peak.

The Cboe Volatility Index, the most widely followed gauge of expected near-term gyrations for the S&P 500, finished little changed at 24.16.

Stocks are closing sharply lower on Wall Street, led by a swoon in technology companies.

More news: Lonzo Ball on biggest adjustment playing with LeBron James

So-called FANG stocks and other tech shares sank in extended trade on Thursday following disappointing quarterly reports from Amazon.com Inc and Alphabet Inc.

About 9.6 billion shares changed hands on US exchanges.

Wall Street favourites in recent years, the FANG stocks have been punished in a month of volatility for USA equities that has some investors anxious a decade-old bull market may be ending. The Russell 2000 index of smaller-company stocks gave up 39 points, or 2.6 percent, to 1,487. It's fallen 13.8 percent since the end of August and is down 2.3 percent so far this year.

Markets have grown volatile since October 3 after three months of abnormally calm trading.

Boeing was one of the few gainers Wednesday.

The French CAC 40 jumped 1.6 percent and Germany's DAX added 1 percent.

The S&P 500 index fell 70 points, or 2.6 percent, to 2,634.

Chipmaker Micron Technology lost 3.8 percent in extended trade after Western Digital said it was taking steps to align its output of flash memory chips with projected weak demand. The yield on the 10-year Treasury note rose to 3.14 percent from 3.12 percent. The euro rose to $1.1412 from $1.1359.

METALS: Gold fell 0.5 percent to $1,231.10 an ounce. Copper dipped 0.1 percent to $2.75 a pound.

In other trading, benchmark USA crude lost 50 cents to United States dollars 66.34 per barrel in electronic trading on the New York Mercantile Exchange.

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