US stocks took a plunge again, the sixth consecutive day for S&P 500 and a continued battering for the Dow Jones Industrial Average, two of the three USA’s major indexes.
S&P 500 sank to 2,656.1 points; a 3.1% fall while the Dow Jones Industrial Average lowered to 24,583.4 points, a fall of 2.4%. Nasdaq experienced a greater fall of about 4.4%. The index witnessed its worst day after the year 2011 and stood 10% lower than its highest position in September. It was the play of the ‘correction’ factor.
The sell-off was faced by the tech giants too with the likes of Amazon, Alphabet, Facebook and Netflix all falling in the range of 4.5%- 9.5%; the main cause being the escalating trade tension between US and China. The fall in Tokyo’s stock markets exceeded 3%.
Investors Spooked by Falling Percentages
Investor anxiety has heightened due to slow growth of the Chinese economy and hike in costs due to tariff and labor issues. Companies like 3M and Caterpillar were down by 4.2% and 5.6% respectively. Poor results for the companies hiked the percentages of the fall.
The feeling of unease was aggravated with the news outbreak of dubious packages and crude bombs received via mail by renowned Democrats including Hillary Clinton and Barrack Obama among others, fifteen days prior to the midterm elections.
The sales figures for new homes reached their lowest lows on Wednesday indicating the weakening of the home market in the US, a highly worrying sign as the sector sets the trend for economic health according to many.
Nate Thooft at Manulife Mutual Funds stated that increased costs were largely related to tariffs. Jack Ablin at Cresset Wealth Advisors felt the sell-off to be driven by emotions and was meant for ruffling up a chaos.
However, key European indexes were not hit severely. A mere 1% hit was taken by the pan-European STOXX 600 before cutting its losses while London’s FTSE 100 fell by 0.9%.