Wall Street slides on Fed tightening, government shutdown threat
By April Joyner NEW YORK (Reuters) - U.S. stocks tumbled on Thursday 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 fallen 2.85 percent, pushing the tech-heavy index more than 20 percent below its Aug.
By April Joyner
NEW YORK (Reuters) - U.S. stocks tumbled on Thursday 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 fallen 2.85 percent, pushing the tech-heavy index more than 20 percent below its Aug. 29 closing high. However, the index, along with the Dow and the benchmark S&P 500, pared losses as the session continued.
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.
"Quantitative tightening is going quicker than expected," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey. "U.S. stocks are repricing."
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 364.16 points, or 1.56 percent, to 22,959.5, the S&P 500 <.SPX> lost 29.58 points, or 1.18 percent, to 2,477.38 and the Nasdaq Composite <.IXIC> dropped 85.65 points, or 1.29 percent, to 6,551.18.
All of the S&P's 11 major sectors fell, with technology <.SPLRCT> and consumer discretionary <.SPLRCD> stocks - among the top contributors to Wall Street's gains in the past few years - registering some of the biggest declines. Energy stocks <.SPNY> also slid as oil prices dropped to their lowest levels in a year.
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 3.63-to-1 ratio; on Nasdaq, a 3.35-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 805 new lows.
(Reporting by April Joyner; additional reporting by Medha Singh in Bengaluru; editing by Shounak Dasgupta and Jonathan Oatis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.