Dow Jones industrials sink 700 points as bond yields rise

Dow falls 500 points as rising Treasury yields drag down market

MSCI's gauge of stocks across the globe fell percent, its biggest single-day fall since February.

The S&P 500 was down 3.29 percent, and the technology-heavy NASDAQ took the biggest hit, plunging more than four percent.

Although the losses were widespread, stocks that have been the biggest winners on the market, including technology companies and retailers, suffered steep declines. Investors see many of these countries as being vulnerable to higher USA interest rates, which can pull away investment dollars.

"The market is starting to believe the Federal Reserve a bit more and starting to price [rate hikes] in", Mona Mahajan, US investment strategist at Allianz Global Investors, told The Post.

Stephen Innes of OANDA said that Trump's comments have put pressure on the dollar but "the severity of this equity rout could bring the hawkish Fed narrative into question".

Other analysts said they had expected the pullback because the soaring market was due for a correction.

Sentiment also has been dampened by the spreading U.S. -Chinese tariff fight over Beijing's technology policy.

Tokyo's Nikkei 225 gave up 3.9 percent to 22,591.10 and the Shanghai Composite lost 4.3 percent to 2,607.44.

The Dow Jones industrial average tumbled more than 400 points to just below 26,000 at lows. Australia's S&P/ASX 200 slipped 2.4 percent to 5,906.00. The stock fell 15 per cent to 50 cents.


Stocks fell Wednesday as concerns about global economic growth and ongoing trade tensions continued to hang over Wall Street and after the bond market resumed a sell-off that started last week.

The index was down 832 points, or 3 percent, at the end of trading Wednesday.

The Technology Select Sector SPDR Fund also fell 4.85 percent for the first time since August 2011. It has fallen 7.5 percent in just five days.

Amazon shares declined 6.2% on Wednesday. These sectors had been some of the top performers over the past year, almost doubling the performance of the S&P 500.

Along with tech stocks, the FAANGs " Facebook, Amazon, Apple, Netflix and Alphabet" have led the market rally. The Japanese yen strengthened 0.53 percent versus the greenback at 112.36.

Francis Tan, an investment strategist at UOB private bank, believes the markets will likely pick up in the US session.

The euro and sterling rose, underpinned by optimism for a Brexit deal, while the USA dollar lost ground against a basket of currencies even as US yields hovered near multiyear peaks.

US crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09.

"There is more optimism that they will find some agreement between Britain and the European Union before Brexit", said Steve Englander, global head of G10 FX research at Standard Chartered Bank in NY. The Nasdaq's 2-percent drop pulled it 7.1 percent away from its high.

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