Published: Fri, November 23, 2018
Markets | By Jeffery Armstrong

Dow dives 2.2%, moves into the red for 2018

Dow dives 2.2%, moves into the red for 2018

The heavy selling on Wall Street continued, with losses in popular tech stocks spreading to the broader market, a rout that erased the 2018 gains of the Dow and broad Standard & Poor's 500 stock index.

The Dow Jones Industrial Average gave up 551.80 points, or 2.2 percent, to 24,465.64.

The S&P 500 index fell 47 points, or 1.8 percent, to 2,688 as of 3:40 p.m. The technology-focused Nasdaq index lost 1.7 per cent to 6,908.82, flat on the year to date. Nokia, a big supplier of telecom networks, fell 3 percent.

Talks between the US and China are continuing ahead of a meeting between Chinese President Xi Jinping and President Donald Trump planned for the G-20 summit later this month. Its revenue was 17.82 billion dollars, slightly higher than analysts' expectations. The Nasdaq composite lost 38 points, or 0.5 percent, to 7,209. Eastern time. The benchmark index has fallen 9.5 percent from its record high two months ago.

All eyes were on Apple, whose shares were down 4.8 percent to close at $176.98, adding to previous losses amid reports of weakened iPhone demand.

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Apple sank 4.8 percent Tuesday. USA crude prices have dropped for six weeks in a row and are trading around their lowest level in about nine months.

Trump's remarks came two weeks ahead of a meeting between Saudi-led OPEC and world's other oil producers to discuss about potential output cut and potential global oil policy in December, in a bid to grapple with the current supply glut worrying investors.

Traders work at the New York Stock Exchange in New York, the United States, Nov. 20, 2018.

Among tech and internet stocks, chipmaker Nvidia dropped another 21 percent to $144.70. Google's Alphabet shares dropped by 1.4 percent.

Apple, Microsoft and Amazon, the most valuable companies on the market, sustained some of the worst losses.

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PG&E, the parent company of California utility Pacific Gas & Electric, fell again - declining 4.7% to $23.26 - after it disclosed that it had a second-power line failure near the start of California's deadliest wildfire the morning the fire began.

The stock has lost half its value since November 8 in spite of a big rally on Friday.

Target skidded 10.2 percent to $69.27 after it said its growing investments in its online business and in stores are bringing in shoppers, but are affecting its profits. The yield on the 10-year Treasury note remained at 3.06 per cent.

The dollar rose to 112.80 yen from 112.54 yen.

Gold rose 0.2 percent to $1,225.30 an ounce. The euro fell to $1.1370 from $1.1453. The pound rose to $1.2855 from $1.2831. Britain's FTSE 100 slipped 0.2%. South Korea's Kospi gained 0.4%.

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