Media Stocks Tumble as Stock Market Drops More Than 800 Points

Caution remains the key word across global markets as investors try to gauge whether the recent selloff has room to run

Stock prices have been hurt by rising interest rates, which have boosted Treasury yields over the last week.

Amazon isn't counted in the S&P 500 IT index but it's worth noting that the company's stock dropped by over 6 percent, a loss of $68 billion in market cap.

The benchmark S&P 500 is down 3.3 per cent to 2,786.

The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August. The S&P 500 lost 94 points, or 3.3 percent, to 2,785.

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 CBOE Volatility Index.VIX, Wall Street's "fear gauge", rose 7 points, or almost 44 percent, to 22.96, going above 20 for the first time since April 11 and hitting its highest close since April 2.

The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy.

Gina Martin Adams, the chief equity strategist for Bloomberg Intelligence, said investors are concerned about the big increase in yields, which makes it more expensive to borrow money.

In addition, Fundstrat's Robert Sluymer argues that in the near term, stocks look oversold and "due for a rebound", as the S&P tests its first support at its 50-day moving average, and the Nasdaq, at its 100-day moving average. The two-year yield rose to 2.89 percent from 2.87 percent, and the 30-year yield climbed to 3.39 percent from 3.37 percent. On Wednesday, the 10-year yield once again touched its highest level in seven years.

Sri Lanka vs England, First ODI at Dambulla, Highlights
I think in the dressing room we have a good understanding... and know that we need to keep improving and pushing the boundaries". However, 15 overs of play was all that was possible before rain pelted down on Wednesday (October 10).

Sears has closed hundreds of stores and sold several famous brands or put them on the block as it sees more customers abandon its stores. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.

Wall Street stocks plunged on Wednesday (Oct 10), with major indices losing more than 3 per cent in a sell-off prompted by the sudden jump in U.S. interest rates. A move of more than two deviations, or 40 basis points now, leads to negative S&P 500 returns, Goldman says. U.S. gold futures settled up $1.9, or 0.16 percent, at $1,193.4.

Luxury retailers tumbled. Tiffany plunged 9.5 percent to $111.28 and Ralph Lauren fell 7.3 percent to $118.42. Silver dipped 0.5 percent to $14.33 an ounce.

The CBOE Volatility Index, Wall Street's "fear gauge", rose 2.5 points, gaining for the fifth straight session to hit its highest since June 25.

Japan's Nikkei 225 added 0.2 per cent, South Korea's Kospi dropped 1.1 per cent and the Hang Seng in Hong Kong gained 0.1 per cent.

For stock investors, the recent spike in bond yields may be prompting some uncomfortable deja vu.

The turmoil came a day after the International Monetary Fund slashed its global growth forecast on worries about trade wars and weakness in emerging markets.

The Australian dollar slipped against major currencies, down to 70.7 USA cents, 53.6 British pence, 61.4 Euro cents and 79.5 Japanese yen. The British pound rose to $1.3197 from $1.3146.

Related:

Comments

Latest news

Investors underestimate risk of financial shock, IFM warns
But the fund lowered China's economic outlook for 2019 to 6.2 per cent, which would be the country's slowest growth since 1990. The IMF said it was now predicting 3.7 percent global growth in both 2018 and 2019.

Pixel 3 includes USB-C headphones, dongle in the box
The Pixel 3 and Pixel 3 XL will be the first Pixel phones to launch in France at the same time as the US, FrAndroid explains. Although rumours are now swirling about the Google Pixel Slate , nothing has been officially confirmed by the tech company.

The 2019 Met Gala has a surprising organising committee and theme
And the event, which is held on the first Monday in May every year, will be hosted by Harry Styles , Serena Williams and Lady Gaga .

Metro by T-Mobile’s first order of business is 5G in 2019
They can come into a Metro store or contact Metro by T-Mobile's customer care team to make the switch. Capable Android device required for Google One registration and backup services.

Ex-EPA chief says burning coal is worst thing for climate change
The United Nations Intergovernmental Panel on Climate Change (IPCC) is warning that the world is heating faster than predicted. Increasingly, you don't have to convince Australian farmers of that.

Kids Who Use Hand Sanitizer Miss Fewer Days of Day Care
As we know, children of this age group are likely to spread germs when they deal with runny noses, sore throats, and coughing. The hand sanitizer group missed 3.25% of days of day care, followed by the soap and water group, which missed 3.9% of days.

Google unveils new Pixel phone, adds tablet in Apple challenge
What you do get for your money, is a compact phone powered by 2018's top hardware, the Qualcomm Snapdragon 845 platform. Cameras: Google's camera processing software is tough to beat and the Pixel 3 XL will likely yield some great results.

Senate Dems Lose Vote For Short-Term Health Care Plans
The justices themselves have expressed concern in recent years about public perception of the court. He later wrote in a newspaper opinion piece that he regretted some of his comments.

Louis Saha rips Paul Pogba for putting pressure on Jose Mourinho
"I think he has done it on goal , and I don't think that is right", Saha said at the AFDP Spirit of Soccer launch. He said the France captaincy was not one of his main goals.

Sears shares dive 27% after report says retailer is preparing for bankruptcy
Lampert has been using his own money for years to keep Sears from collapsing as its customers defect and sales fall. Sears, once the world's largest retailer, has struggled in the face of declining foot traffic in its stores.

The Witcher Netflix series casts Ciri and Yennefer
We already have our Geralt of Rivia in Henry Cavill , and now we know who'll be joining him for The Witcher Netflix series . Hissrich told The Hollywood Reporter however that full-production will be starting soon.

An invisible crisis: developing countries remain ill-equipped to tackle mental health
One such discussion was held on Twitter earlier this year during May, which is considered as Mental Health Month. A combination of issues is usually the biggest contributors to mental health among young people, says Chambers.

Belgian soccer teams raided in vast match-fixing, fraud probe
Police also raided properties in France , Luxemburg, Cyprus, Montenegro, Serbia and Macedonia, prosecutors said in a statement. A statement from Oostende said that a swift search of their offices had taken place but no-one from their club was questioned.

'WORST CASE SCENARIO': Florida Panhandle braces for Michael
Any time a tropical system, and it's remnants, move north up the East Coast we need to be concerned here in ME for wind and rain. Scott said that he's called up 2,500 members of the National Guard to assist, and has more than 1,000 rescuers at the ready.

Australia mulls banning some immigrants from biggest cities
Mr Tudge will say travel in peak times in Sydney takes 65 percent longer than off-peak, and 55 percent, in Melbourne. The visa changes would not apply to family reunion visa holders, or people sponsored by an employer.

Other news