U.S. Stocks Fall Sharply, Tech Sector Leads Declines

The Dow tumbles more than 400 points

He notes that while the US stock market has managed to post gains virtually uninterrupted, that's not the case in most other parts of the world, so that trend may be finally catching up in North America.

The Dow Jones Industrial Average experienced the third worst point decline in its history Wednesday, falling more than 800 points.

Higher long-term rates could slow down red hot sectors of the economy, including technology, especially as the Federal Reserve seems intent on raising short-term rates for the foreseeable future.

Citing concerns about trade and emerging markets, the worldwide lender lowered its global growth forecast for this year and next in a report.

Grant Williamson, a client adviser at broker Hamilton Hindin Greene, said another turbulent day on Wall St was always likely to have an impact on the local market. "We are starting to see downward pressure".

Investors are nervous a trade war would slash profits. The FAANGs, spread over three sectors, were down between 1.4 per cent and 4.5 per cent.

"Two weeks ago this kind of news would not have affected the market", he said.

Those factors came at a time when there was not much newsflow from companies.

Tech stocks declined due to rising bond yields, which followed a spike in rates for the benchmark United States 10-Year Treasury.

The small-cap Russell 2000 index, which is less sensitive than its larger peers to global worries such as trade and yields, was down 1.18 percent.

Bond prices fell. The yield on the 10-year Treasury rose to 3.23 percent. The rise in rates is weighing particularly heavily on areas of the market that had earlier been the biggest winners. Eastern time. It's on track for its fifth straight drop, which hasn't happened since right before the 2016 presidential election.

The technology-heavy Nasdaq composite dropped 4.1% to 7,422 points, its biggest loss since February 8. It's fallen sharply over the past five days.

Meanwhile, the Nasdaq Composite dropped 315.97 points, or 4.08 percent, and the Dow Jones Industrial Average was down 831 points, or 3.15 percent.

Pipeline explosion near Prince George
The province's Ministry of Environment later confirmed the incident involved a 900 PSI gas line operated by Enbridge. The blast Tuesday shut down the Enbridge natural gas pipeline about 15 kilometres northeast of Prince George .

In Canada, the S&P/TSX composite index was down 238.87 points or 1.51 per cent, to 15,615.18. The latest slump in the market has, however, shaved off some of the big gains.

Apple gave up 4.6 percent to $216.36 and Microsoft dropped 5.4 percent to $106.16.

Along with tech stocks, the FAANGs - Facebook, Amazon, Apple, Netflix and Alphabet - have led the market rally.

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

Insurance companies dropped as Hurricane Michael continued to gather strength and came ashore in Florida bringing winds of up to 155 miles per hour.

Rising government bond yields have made them more attractive, leading investors to pull money out of equities.

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U.S. 10-year Treasuries, a closely-watched indicator of bond yields, hit a seven year high of 3.26pc on Wednesday. Chip gear producers Applied Materials, Teradyne and ASML Holdings fell between 3.5 percent and 4.6 percent.

"Both companies highlighted rising costs, not only input costs but increasing operating expenses (and) marketing expenses", she said.

The White House says there is no reason for concern after USA stocks suffered their worst loss in eight months Wednesday.

Is the dip hitting other markets?

Yesterday, New Zealand shares fell for an eighth day as investors remain uncertain about the global economic outlook. Within the index, 26 stocks fell, 20 gained and four were unchanged. Heating oil fell 1.2 per cent to $2.39 a gallon.

As investors look for safe bets, utility stocks, which tend to pay big dividends, were also rising slightly Wednesday.

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