Stocks suffer worst losses in 8 months on rising interest rates

U.S. stocks tumbled the most since February as fresh concern about the impact of the trade war with China roiled technology and industrial shares. Treasuries rose with the yen amid demand for haven assets.

The broad selloff took the S&P 500 to the lowest in three months, the Dow Jones Industria average plunged as much as 836 points and the NASDAQ composite index tumbled more than 4 percent.

All 30 members of the blue-chip index retreated, with Boeing and Caterpillar dropping at least 3.8 percent. Computer companies led the S&P 500 to a fifth straight loss, the longest slide since Donald Trump’s election win.

The Standard & Poor’s 500 index declined 3.3 percent. The five-day slump is the longest since November 2016. It’s down 4.8 percent during that span. The Dow fell 832 points, or 3.2 percent, for the biggest drop since February. It slid below 26,000 to the lowest point since Aug. 16. The NASAQ lost 4.4 percent, to the lowest since July 3.

Fastenal Co. added to angst that the trade war with China is raising materials costs that will crimp profit margins. Estee Lauder and Tiffany led losses after French luxury goods maker LVMH confirmed China is enforcing customs rules more strictly as trade tensions remain high. The Cboe Volatility Index rose past 20 for the first time since April. Oil fell from $75 a barrel even as a major hurricane headed for the Florida Panhandle.

“The biggest thing going on in markets is you’re seeing an unwind,” Sameer Samana, a global quantitative and technical strategist for Wells Fargo Investment Institute, said by phone. “You had stocks doing really well, rates for the most part were very well-behaved. When you’ve got these risk-off moments, especially when you’re later in the cycle, there is some concern on the

Read More Here...

Bookmark the permalink.