The major U.S. stock indexes plunged for a second day as investors continued to try to make sense out of the U.S. Federal Reserve's decision to raise its benchmark interest rate and continue to let its massive balance sheet shrink at the current pace.
The Dow Jones dove 2 percent, or some 470 points, on Thursday following US President Donald Trump's threat to shut down the government over border wall funding.
The broad-based S&P dropped 1.5 per cent to 2,506.87, while the tech-rich Nasdaq Composite Index sank 2.2 per cent to 6,635.48.
A bruising December has set up Wall Street for its worst year since the financial crisis.
Stock indexes are meandering up and down in midday trading as the market steadies following two days of steep drops.
The Russell 2000 is down nearly 24 percent from the peak it reached in late August and it's down 13.6 percent for the year to date. That hasn't happened yet, but investors fear it will. Inversions are often taken as a sign a recession is coming, although it's not a ideal signal and when recessions do follow inversions in the yield curve, it can take a year or more. The U.S. economy has been growing since 2009, and most experts think it will keep expanding for now. "Fear about a US government shutdown is playing into the mix too".
"The bond market has been telling us something for about a year, and that is there's not going to be much inflation and there's not going to be a sustained surge in economic growth", said Wren, of Wells Fargo.
Dow Dives to Lowest Point in 2018 After Fed Rate Hike
The S&P 500 index rose 8 points, or 0.3 percent, to 2,476.
Benchmark 10-year Treasury notes last rose 2/32 in price to yield 2.783 percent, from 2.789 percent late on Thursday. For instance, the Nasdaq fell 55.6 percent during its last bear market, which ran from October 31, 2007, to March 9, 2009.
By contrast, in that same period, the S&P 500 .SPX gained just 331 percent, with a total return of 425 percent. Those worries are reinforced by a 30 per cent-plus decline in world oil prices since October.
Oil, the Russell 2000, the Dow transports index, and stock markets in China, Italy, Germany, Japan and South Korea are all in bear markets, too.
As investors adjusted to the prospect of a weaker economy and lower long-term interest rates, the dollar fell to ¥110.90 from ¥112.36. Google parent Alphabet was down 3 per cent, Amazon down almost 5 per cent, Facebook down more than 5 per cent, Netflix almost 5 per cent and Apple was in the red less than 2 per cent. The euro fell back to $1.1369 from $1.1469 and the British pound slipped to $1.2639 from $1.2671. Procter & Gamble lost 1.3 percent. Brent crude, used to price global oils, slipped 4.8 percent to $54.50 a barrel in London.
Walgreens fell 2.8 percent and Conagra, a giant food maker, fell 7.4 percent.
Saudi Arabia seeks to boost intelligence oversight after Khashoggi murder
The total number of journalists killed in 2018 has not risen greatly from those killed in 2017 and 2016, according to the report . Sixty-two percent of the journalists killed covered politics, which the report deemed the most unsafe beat.
Harvey Weinstein fails in bid to dismiss sex charges
About half a dozen women supporting Time's Up , including actresses Amber Tamblyn and Marisa Tomei , were at the hearing Thursday. Weinstein's defense was boosted in October by back-to-back allegations of misconduct in the police investigation.
Trump Is Right About Syria (and Turkey)
Some analysts say the US troop withdrawal could also have a silver lining and could send a useful message to all sides. Since then, security conditions in Afghanistan have not improved, according to the latest government watchdog report .