Nasdaq enters correction territory in worst day since 2011
- Author: Eleanor Harrison Oct 29, 2018,
Oct 29, 2018, 6:32
As of this week, the Dow Jones and S&P 500 indexes have given up the gains they posted earlier in the year, while the Nasdaq is up only about 2%.
Traders work on the floor of the New York Stock Exchange in New York on Wednesday.
The Dow and S&P 500 both moved back in positive territory for the year.
Companies began reporting their results for the third quarter last week.
Asian and European stock markets have tumbled after USA values returned to levels not seen since the start of the year. "That's causing some of this volatility".
The Nasdaq composite added 209 points, or 3 percent, to 7,318.
The Dow Jones Industrial Average lost 2.4%, meaning it had erased all 2018's gains by the close. The average had been down more than 540 points.
Following the heavy falls on global markets, ASX futures slumped by nearly 100 points, indicating falls of more than 2% on the local index today. The Dow and S&P 500 have almost erased their gains for the year.
Disappointing quarterly results and outlooks weighed on the market, stoking investors' jitters over future growth in corporate profits.
Investors trimmed most of the losses in afternoon trading as some thought the losses were overdone.
The Russell 2000 is down 73.34 points, or 4.8 percent.
While a sharp increase in personal consumption helped boost the overall GDP reading, there was also an increase in business inventories during the quarter.
"Of course we're going to get a recession someday, but it doesn't look like we're going to get one very soon".
Apple (AAPL.O) fell 1.6 percent after hours, while Twitter (TWTR.N) dipped 2.5 percent. AT&T dropped 6.2 percent. With strong consumer spending offsetting weaker investment and exports, gross domestic product rose at a seasonally adjusted 3.5% in the third-quarter.
Wednesday was rough for all the US major indexes, especially the Nasdaq.
Bond prices rose. The yield on the 10-year Treasury note fell to 3.13 percent.
In other trading, benchmark US crude lost 71 cents to $66.11 per barrel in electronic trading on the New York Mercantile Exchange. National Oilwell Varco lost 7.8 percent to $34.12.
HIGH FLYER: Boeing rose 2.3 percent to $358.03 after the defense contractor's latest quarterly results topped analysts' forecasts.
The dollar weakened to 112.08 yen from 112.23 yen. The fall came after the online retailer and cloud computing heavyweight reported that its quarterly net sales rose to $56.58 billion from $43.74 billion a year earlier. Silver dropped 0.8 percent to $14.68 an ounce. It's fallen 13.5 percent since the end of August and is down 2 percent so far this year.
Some investors, including David Meier, a portfolio manager at Motley Fool Asset Management, say the sense that stock prices have simply reached their peak is driving the markets, too. Germany's DAX slipped 1.1 per cent, while France's CAC 40 dropped 1.8 per cent. Britain's FTSE 100 slid 1.3 per cent. The Kospi in South Korea dropped 1.6 percent.