Published: Mon, October 29, 2018
Markets | By Jeffery Armstrong

Global markets in sell-off mode

Global markets in sell-off mode

Earlier in the day, Twitter surged 15 percent in its biggest one-day gain in a year after the social media company easily beat Wall Street's revenue and profit estimates.

In New York trading overnight, the Nasdaq composite with its hefty roster of tech stocks bore the brunt of the sell-off, falling more than 10 per cent below its August peak, what Wall Street calls a "correction".

Several companies sustained heavy drops after reporting disappointing results.

The Dow Jones Industrial Average gained 401.13 points (1.63 per cent) to 24,984.55, while the broad-based S&P 500 advanced 49.47 points (1.86 per cent) to 2,705.57.

U.S. stocks finished a punishing session sharply lower on Wednesday (Oct 24), with major indices sinking more than two percent and the Dow and S&P 500 tumbling and wiping out all the 2018 gains.

The Nasdaq closed down 12.4 percent from its August 29 record closing high, falling 4.4 percent for the day in its biggest one-day percentage decline since August 18, 2011.

USA stocks declined broadly in early trading Friday, erasing the market's gains from a strong rally a day earlier and putting major indexes back into the red for the year.

The Dow is down 860.92 points, or 3.4 percent.

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The S&P 500 index rose 43 points, or 1.6 percent, to 2,699.

Reacting after hours, Netflix dipped 1.9 percent and Facebook, which reports results on October 30, lost 1.5 percent.

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

The Dow Jones Industrial Average climbed 104 points, or 0.4 percent, to 24,689.

Caterpillar finished with a drop of 7.5 per cent despite reporting a 63 per cent jump in third-quarter profits to US$1.7 billion.

The Russell 2000 is down 51.69 points, or 3.4 percent.

Technology and consumer-focused companied led the declines early Friday.

In London, the FTSE 100 retreated to levels last seen in December 2016, closing down 0.9% at 6,939.56.

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Toyota Motor Corp. gave up 2.1 percent while Hong Kong-based retail supply chain giant Li & Fung Ltd. lost 2 percent.

Mattel dropped 2.8 percent to $13.45 after the toy maker served up quarterly results that fell short of analysts' forecasts.

Investors may also be signaling their concern that interest rate hikes by the Federal Reserve will dampen USA economic growth, according to Capital Economics.

Bond prices rose as investors sought safety, sending yields lower.

Investors moved to the relative safety of U.S. government bonds, which move inversely to yields, withthe 10-year falling 3.9 basis points to 3.077%, its lowest level in three weeks. Brent crude, used to price global oils, declined 72 cents to $75.45 a barrel.

The results, along with gains for chipmakers, lifted technology stocks up 2.32 percent today.

CURRENCIES: The dollar strengthened to 112.51 yen from 112.47 yen on Tuesday.

Major European stock indexes fell. The index is now off about 9.4 percent from its September 20 peak. The Kospi in South Korea dropped 1.6 percent.

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