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BCN-06
US-STOCKS-MARKETS
Dow falls 2% as US stock sell-off accelerates
NEW YORK, Feb 3, 2018 (BSS/AFP) – Wall Street stocks plunged Friday
afternoon as disappointing earnings from big companies and worries about
higher interest rates accelerated a sell-off as the first bad trading week of
2018 neared conclusion.
At about 1940 GMT, the Dow Jones Industrial Average was down more than 500
points, or 2.0 percent to 25,664.38.
The broad-based S&P 500 dropped 1.7 percent to 2,775.32, while the tech-
rich Nasdaq Composite Index sank 1.4 percent to 7,285.45.
Analysts have been eyeing a rise in US bond yields this week that
accelerated further on Friday after a stronger-than-expected US jobs report
raised expectations more Federal Reserve interest rate increases could be
coming.
US stocks opened 2018 on a tear, with the Dow surging above 25,000 and
then 26,000 points in quick succession. But investors have started to
question the valuations if the Fed’s so-far benign pace of interest rate
hikes accelerates.
“Investors just felt the market had gone too high for too long,” said Sam
Stovall, chief investment strategist at CFRA Research.
“The yield in the 10-year (US Treasury) note moving above 2.5% earlier in
the week started the sell-off and was accelerated by today’s employment
report.”
Adding to the market’s dim mood was a batch of largely underwhelming
earnings reports from big companies that prompted dropping prices for key
stocks. These included Dow members Apple, down 3.4 percent, Chevron, down 4.9
percent and ExxonMobil, down 5.3 percent.
BSS/AFP/HR/0945