The Dow tumbles more than 400 points

Back in late January and early February, there was a 10-per-cent correction in the S&P 500, with stock investors spooked as Treasury yield increases intensified with a monthly payrolls report showing the biggest wage gains for workers since 2009.

The Dow Jones industrial average lost 248, or 0.9 percent, to 26,183, and the Nasdaq composite dropped 145, or 1.9 percent, to 7,589. The Nasdaq dropped more than 4% in the worst percentage decline since June 2016. Earnings season should improve investors' moods through the end of the year, he writes, with a cycle peak in 2020 and the next major low not due until 2020. Berkshire Hathaway dipped 4.7 per cent to US$213.10 and reinsurer Everest Re slid 5.1 per cent to US$217.73. Concerns about consumer spending have also led to jitters about United States companies as they prepare to unveil results for the third quarter of the year over the coming weeks. Bond yields move in the opposite direction to price. Higher rates can also slow economic growth, making it more expensive for businesses to borrow and for consumers to spend.

Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said the stocks have become more volatile in the last few months because investors have concerns about their future profitability. She said they also fear that company profit margins will be squeezed by rising costs, including the price of oil. Yields on 3-year notes have recently traded just above 3.0 percent, providing long-absent competition for investment returns with equities.

Stocks have slumped over the last week as a combination of strong economic data and positive commentary from Federal Reserve leaders sent bond yields rocketing higher as investors bet that interest rates will keep rising.

Sears Holdings plunged 37 percent after the Wall Street Journal reported that the struggling retailer is preparing a bankruptcy filing. The stock fell 34 percent to 38 cents in morning trading. A move of more than two deviations, or 40 basis points now, leads to negative S&P 500 returns, Goldman says.

This time around, strong economic data anxious bond investors, who sent the benchmark yield on Tuesday to 3.261 per cent, the highest since early May 2011.

Bond yields and therefore interest rates have been rising for more than two years as the USA economy grew strong.

More news: Amazon Great Indian Festival Sale Day 1: Best smartphone deals Slideshow
More news: Two Britons killed in taxi among five dead in Majorca flash floods
More news: Major Hurricane Michael to reach Panhandle Wednesday; multiple adversities for local area

The 10-year Treasury yield remained at 3.20 percent, about where it was late Tuesday, after earlier touching 3.24 percent. Over the years, Sears has closed hundreds of stores and sold several famous brands.

CVS dipped 0.1 per cent to $79.40 and Aetna added 0.5 per cent to $204.64. Natural gas rose 0.6 per cent to $3.28 per 1,000 cubic feet.

Benchmark U.S. crude oil fell 2.4 per cent to $73.17 a barrel in NY.

The S&P 500 fell 54 points, or 1.9 percent, to 2,825.

Shares in upscale jewellery retailer Tiffany & Co and perfume maker Estee Lauder both fell 7 percent after a warning from French luxury goods firm LVMH about softening demand in China.

The S&P 500 fell 39 points, or 1.4 percent, to 2,840.

CURRENCIES: The dollar held steady at 113.05 Japanese yen.

Recommended News

  • China Trade War to Hurt Global Economic Growth

    China Trade War to Hurt Global Economic Growth

    The Asian Development Bank has forecast 4.8 percent and the State Bank of Pakistan expects 5 percent GDP growth. The fund upgraded its forecast for Japan slightly to 1.1 per cent growth this year, up 0.1 point from July.
    Wolves demand Eric Gordon, PJ Tucker from Rockets for Jimmy Butler

    Wolves demand Eric Gordon, PJ Tucker from Rockets for Jimmy Butler

    Outside of the Heat, the Timberwolves have had no serious, active talks ongoing with any other team recently, league sources said. He reportedly "verbally challenged" his teammates, as well as the Timberwolves' coaching staff and front office.
    Here's every device Google launched at its Made By Google event

    Here's every device Google launched at its Made By Google event

    Numerous details about the Google Pixel Slate have already been revealed to the world thanks to an appearance on Geekbench. There have been so many leaks of Google's hardware over the last month or so that we know most of what's coming.
  • Lana Del Rey Goes HARD After Azealia Banks On Twitter!

    Lana Del Rey Goes HARD After Azealia Banks On Twitter!

    If you doubted Del Ray may have been about that action with Banks she also told her she had the address to pull up. Last night, Del Rey made a decision to finally clap back at Banks with a handful of serious tweets.
    Verizon retains exclusive on Google's Pixel 3

    Verizon retains exclusive on Google's Pixel 3

    Google declined to address that further Tuesday, though executives emphasized privacy and security throughout the event in NY . The 3rd Gen Chromecast comes in two colors-Chalk and Charcoal-along with a new matte finish and minimal Google branding.
    Ukrainians will be able to see the amazing astronomical phenomenon

    Ukrainians will be able to see the amazing astronomical phenomenon

    The Draconids originated from cosmic dust of the comet 21P/Giacobini-Zinner, while the Orionids originated from Halley's Comet. But the good news is you can watch the meteors zip across the sky regardless of whether you spot the Draco stars or not.
  • Minnesota health officials on the lookout for rare nervous system disorder

    Minnesota health officials on the lookout for rare nervous system disorder

    In 2016, there was a cluster of nine cases of AFM in Washington and there were three in 2017, according to the health department. This virus is transmitted from person to person and it can have severe effects of the brain and spinal cord of the system.
    Freaky First Trailer for Kölsch & Widmyer's 'Pet Sematary' Adaptation

    Freaky First Trailer for Kölsch & Widmyer's 'Pet Sematary' Adaptation

    The first look at Pet Sematary does what all solid trailers for book-to-movie adaptations should: establish the central premise of the story.
    That's wife! Century maker Hafeez reveals Test return inspiration

    That's wife! Century maker Hafeez reveals Test return inspiration

    Mitchell Starc , Jon Holland and Marnus Labuschagne took one wicket each. Usman Khawaja got to 85 before falling to Bilat Asif.
  • Music surprising star of American Music Awards

    Music surprising star of American Music Awards

    The singer racked up wins for favourite pop/rock album for " reputation ", tour of the year , and artist of the year . Host Tracee Ellis Ross also showed her support for voting, wearing an "I Am A Voter" shirt.
    Microsoft announced its own streaming service games

    Microsoft announced its own streaming service games

    This could pose a problem, as most games are created to be played using either a controller or a keyboard and mouse config. Microsoft officially unveiled its groundbreaking game streaming service, Project xCloud .

    Pixel 3 series to get guaranteed feature, security updates until October 2021

    Third-party manufacturers like Lenovo and JBL already make their own versions, complete with integrated camera for video calls. While Google's phones have some compelling features, the Samsung Galaxy Note 9 is still the better phone for the enterprise.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.