Markets Right Now: Dow down 500 as stocks sink steadily


With Thursday's 4 percent drop, the USA stock market had officially entered a correction, which is when major indexes are down at least 10 percent from their recent peaks.

The S&P 500 dropped 100.66 points, or 3.75 percent, to 2,581.00.

The Nasdaq lost 274 points on the day (3.9 percent), while the S&P 500 closed with a 100-point loss (3.75 percent).Thursday's close was the second time in history the Dow has lost more than 1,000 points in one day, after falling 1,175 points on Monday. The broader S&P 500 also regained ground, climbing to 2,590.40 on a gain of 9.4 points, or 0.36 per cent. S. equity indexes swinging between positive and negative territory, a day after a plunge that confirmed a correction for the market, while benchmark Treasury yields were set to close the week little changed.

US stocks wavered between small gains and losses in morning trading today, giving up some of a big jump that came right after the opening bell.

This week has been a week that USA stock markets will be glad to see the back of.

"The fact that Monday's lows were breached on Thursday signals more trouble ahead, and rallies are likely to give way to rising bond yields", Peter Cardillo, economist at First Standard Financial in NY, told Reuters.

Global markets fell on Friday, following the Dow's decline on Thursday.

Instead the plunge in market prices on Monday amounted to a stock market correction.

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United Kingdom gilts sold off and the pound rose after the Bank of England lifted its forecasts for economic growth and suggested it may need to raise interest rates faster than previously indicated.

The Dow briefly sank 500 points in afternoon trading after surging more than 349 points earlier in the day.

World stocks were also on track for their worst week since 2011, weighed down by a 4 percent drop in Chinese stocks.

U. S. crude fell 2.16 percent to $59.83 per barrel and Brent was last at $63.50, down 2.02 percent on the day.

Bargain hunting may contribute to early strength on Wall Street after the steep losses seen in the previous session dragged the major averages down to their lowest levels in about two months. Eastern Time. The Dow tumbled 272 points, or 1.1 percent, to 23,587.

At 0700 AEDT on Friday, the share price futures index was down 82 points, or 1.41 per cent, at 5,730.

Overall, the Dow ended the week down 5 percent.

"If I have to choose bonds or equities, with interest rates going up, bonds just got more attractive", Alexandra Coupe, associate director investment manager PAAMCO, told The Washington Post. Chipmaker Nvidia (NVDA) added $14.56, or 6.7 percent, to $232.08.