Tech, luxury goods lead Wall Street slide

New York City. With bond prices dropping interest rates have been surging resulting in the Dow Jones Industrials Average falling over 200 poin

All 30 Dow stocks were in the red, sending the index below 26,000 points for the first time in a month.

US stocks plunged Wednesday as investors ramped up their selling of high-flying technology and internet stocks.

Stocks from emerging markets were also hard hit. The stock fell 16.8 per cent to 49 cents. Technology stocks dropped 3 percent, with Netflix, Amazon and Google parent Alphabet leading the way.

During the regular session, the S&P 500 marked its biggest daily percentage fall since February 8 - 3.3 percent - and Nasdaq registered its biggest fall since June 24, 2016 - 4.1 percent - as rising U.S. Treasury yields sent investors fleeing from risky assets. Rising interest rates from the Fed and a tight employment market don't reassure investors, either.

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.

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.

Earlier on Thursday, the SPI200 futures contract was down 109 points, or 1.81 per cent, to 5,914.0 at 7am AEDT, pointing to bleak open for the ASX, which had clawed back some ground on Wednesday after a turnaround in financial stocks and a strong performance by the healthcare sector.

The S&P 500 index fell 15 points, or 0.6 percent, to 2,864.

The 10-year Treasury yield remained at 3.20 per cent, about where it was late on Tuesday, after earlier touching 3.24 per cent. That didn't happen Wednesday as stocks fell further late in the day.

Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices.

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That has helped make technology stocks more volatile in the last few months.

There have recently been several indications that the US housing market has cooled, likely in part due to higher rates on mortgages. Investors see many of these countries as being vulnerable to higher USA interest rates, which can pull away investment dollars.

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.

Tech stocks and companies that sell non-essentials to consumers have been some of the top performers over the a year ago, gaining almost twice as much ground as the S&P 500.

But historically, a monthly move of one to two deviations, or 20 to 40 basis points now, would result in flat S&P 500 returns.

Alec Young, managing director of global markets research at FTSE Russell, said investors fear that rising interest rates and growing expenses are going to erode company profits next year.

US crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09.

The S&P/NZX 50 index declined 19.16 points, or 0.2 per cent, to 9050.82.

Trade-sensitive industrial stocks also fell as tensions between Washington and Beijing persisted.

There were, however, slight lifts for Japan's Nikkei, which added 0.2 per cent, and Hong Kong's Hang Seng, which gained 0.2 per cent. Brazil's Bovespa lost 2.5 percent and the Merval in Argentina sank 2.2 percent.

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