Wall Street slides on Fed plans; Nasdaq flirts with bear territory
By April Joyner NEW YORK (Reuters) - U.S. stocks slid on Thursday, with the Nasdaq on the cusp of confirming bear market territory, as the Federal Reserve's plan to continue its balance sheet reduction and the threat of a partial government shutdown fuelled investor anxieties. At its session low, the Nasdaq had tumbled 2.85 percent, pushing the tech-heavy index more than 20 percent below its Aug
By April Joyner
NEW YORK (Reuters) - U.S. stocks slid on Thursday, with the Nasdaq on the cusp of confirming bear market territory, as the Federal Reserve's plan to continue its balance sheet reduction and the threat of a partial government shutdown fuelled investor anxieties.
At its session low, the Nasdaq had tumbled 2.85 percent, pushing the tech-heavy index more than 20 percent below its Aug. 29 closing high. The index, along with the Dow and the benchmark S&P 500, pared losses as the session continued. The Nasdaq ended down 19.5 percent from its closing high, just shy of confirming a bear market.
The Fed's move on Wednesday to largely adhere to its plan for more rate hikes over the next two years and keep its balance sheet reduction plan on "autopilot" spooked investors already worried about slowing economic growth.
"This is primarily just a follow-through from yesterday's selling," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "The market is just upset about the whole aspect of balance sheet normalization."
Adding to the gloom was the possibility of a partial U.S. government shutdown on Friday. President Donald Trump told Republican congressional leaders he will not sign a government funding bill because it fails to include enough funding for border security.
"For 2019, I suspected there was going to be antagonism between the House (of Representatives) and the White House," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. "This is only a partial government shutdown, but if (Trump) is going to be obstinate, that's not a good sign for next year."
The Dow Jones Industrial Average <.DJI> fell 464.06 points, or 1.99 percent, to 22,859.6, the S&P 500 <.SPX> lost 39.54 points, or 1.58 percent, to 2,467.42 and the Nasdaq Composite <.IXIC> dropped 108.42 points, or 1.63 percent, to 6,528.41.
Thursday's trading volume was the second-highest of the year, at 12.09 billion shares, compared with the 8.38 billion-share average over the last 20 trading days.
Of the S&P's 11 major sectors, only utilities <.SPLRCU> ended in positive territory. Energy stocks <.SPNY> slid 2.8 percent as oil prices dropped to their lowest levels in a year.
Technology <.SPLRCT> and consumer discretionary <.SPLRCD> stocks - among the top contributors to Wall Street's gains in the past few years - registered heavy declines.
Gloomy corporate results and forecasts also weighed on U.S. stocks.
Shares of Walgreens Boots Alliance Inc
Also declining as a result of disappointing corporate earnings forecasts were shares of Accenture Plc
Declining issues outnumbered advancing ones on the NYSE by a 3.97-to-1 ratio; on Nasdaq, a 3.41-to-1 ratio favoured decliners.
The S&P 500 posted no new 52-week highs and 175 new lows; the Nasdaq Composite recorded three new highs and 858 new lows.
(Reporting by April Joyner; additional reporting by Medha Singh in Bengaluru; editing by Shounak Dasgupta, Jonathan Oatis and Dan Grebler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son