Dow Industrials Plunge 1,000 Points for Second Time in Week

(CN) – The Dow Jones Industrial Average plunged more than 1,000 points for the second time in four days and stocks overall suffered their fifth loss in the last six days.

As of the close of the market on Thursday afternoon, the two most watched stock indexes, the Dow and the Standard & Poor’s 500, have dropped 10 percent from their all-time highs, set Jan. 26.

The Dow Jones industrial average lost 1,032.89 points, or 4.1 percent, dropping to to 23,860.46 on Thursday, with Boeing, Goldman Sachs and Home Depot seeing some of the worst losses.

The S&P 500, the benchmark for many index funds, shed 100.66 points, or 3.8 percent, to 2,581. It hasn’t been that low since mid-November. The Nasdaq composite fell 274.82 points, or 3.9 percent, to 6,777.16.

The markets have been marked by increased volatility since last Friday, when the Labor Department announced that workers’ wages few at a fast rate in January.

While that was good news for consumers, it stoked fears among investors who are now worried about a drop in corporate profits and a potential rise in inflation.

Higher wages at a time of nearly full employment are also seen as likely prodding the Federal Reserve to raise interest rates at a faster pace, which would act as a brake on the economy.

On Wall Street the recent turn of events is being called a “correction,” but some fear they could be a harbinger to a bear market, loosely defined as a time when prices are falling and sellers outnumber buyers.

Among the sectors that have performed poorly on Wall Street this week are banks, homebuilders and tech companies.

The market didn’t get much help Thursday from company earnings reports, several of which disappointed investors. While U.S. companies mostly did well at the end of 2017, a number of them had a weak finish to the year.

The Associated Press contributed to this report.

 

%d bloggers like this: