Wall Street reverses gears on surging interest rates

U.S. stocks rebounded in volatile midday trading on Tuesday, following the biggest one-day declines for the S&P 500 and the Dow in more than six years.

The Dow Jones Industrial Average ended down 19.42 points at 24,893.35, while the S&P 500 index closed 0.5 percent lower at 2,681.66.

The Dow Jones Industrial Average rose as much as 381 points, to 25,293.96, and the S&P 500 Index also advanced, following the previous session's late surge.

While low interest rates have been the basis of the nine-year-long bull market in stocks, falling bond prices and rising yields augur higher interest rates.

Advancing issues outnumbered decliners on the NYSE by 2,028 to 802.

On Wall Street, all but two S&P 500 index sectors ended higher, with economically sensitive materials, technology and consumer discretionary indexes posting the biggest gains. Apple's stock declined by 2.1%. A 20 percent drop today would be almost 5,300 points on the Dow. One thing to monitor is whether this pullback is enough to shock markets out of the low-volatility environment that has prevailed in recent years - the current spike is no surprise, but we have seen similar moves before, only for volatility to dissipate'.

The Dow was up over 26 percent from January 2017 to January 2018.

"It's just the latest log on the fire", said Schumacher.

In the energy market, oil prices fell.

"It takes a number of days for the market to find equilibrium and find a clear bottom", said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. On Wall Street, it's the equivalent of giving someone a time out. Benchmark U.S. crude lost 21 cents to $61.58 per barrel in electronic trading on the New York Mercantile Exchange. The market had run up too high, too fast and needed to let off some steam, they say. A soft auction added to the jump in yields, which move opposite prices. But the rebound showed that even after going through the worst market tumble in more than six years, some investors are still in a buying mood.

Some of the sudden plunge in the U.S. markets on Monday was pinned on algorithmic trading, which is when computers are programmed to follow specific instructions to place trades. He said the loss represented a 4.5 percent decline in the market.

It also dropped against the British pound (-0.5pc), euro (-0.2pc) and Japanese yen (-1pc).

The Standard & Poor's 500 index, a broader market barometer that many index funds track, climbed 46.20 points, or 1.7 percent, to 2,695.14. The last fall of that size came in August 2011 when investors were fretting over Europe's debt crisis and the debt ceiling impasse in Washington that prompted a U.S. credit rating downgrade.

Trading volume of more than 12.3 billion shares marked the busiest trading day since just after the November 2016 election, and topped Monday's volume of 11.7 billion.

Investors are awaiting Thursday's Bank of England meeting which should provide an update on authorities' views on the economy and timing of the next interest rate rise. But U.S. shares were set to drift lower with Dow futures down 1.1 per cent at 24,527. Britain's FTSE 100 surged 0.8 per cent to 7,200.85. Shares of Tronc Inc. soared after reports that it sold The Los Angeles Times to billionaire Patrick Soon-Shiong for around $500 million.

Even so, one couldn't blame investors for forgetting this trend, as the market didn't drop more than 3 percent on a single day all last year. On Tuesday, major companies reported another round of strong profits, with General Motors, BP, Allergan, health-care companies and others beating analysts' expectations.

(Derechos de autor © 2015. Todos los derechos reservados.)
 
Recomendado

Let's see more of presidential Trump — Our Editorial
In the Senate, Republicans need Democratic support for these measures, as the GOP only holds 51 seats and 60 votes are required. But he did almost nothing to set an agenda. "They are trying to generate a narrative that doesn't match reality", Binion says.

These leaked Samsung Galaxy S9 pics reveal phone's innards and specs
The Samsung Galaxy S9 will feature a 12-megapixel rear camera , not a dual rear camera setup, but luckily the Galaxy S9+ will . The XML files are named after the codenames of the Galaxy devices and they are expected to be tested for Android Oreo update .

State of the Union ratings: Down overall but up for Fox News
Tuesday's ratings were also slightly lower than the comparable State of the Union speech delivered by President Obama in 2010. These high approval ratings - both then and now - have much to do with who actually watches State of the Union speeches .

Arsenal complete Pierre-Emerick Aubameyang signing for club-record fee
Giorud has only scored seven goals in 26 appearances for Arsenal this season, but only started one Premier League game so far. The Frenchman said Aubameyang has been ill and that his fitness will be assessed before the 17:30 GMT kick-off.

Trump approves release of memo alleging FBI surveillance abuse in Russia probe
The memo centers on secret surveillance of Carter Page , an adviser to then candidate Donald Trump for some six months in 2016. The California Democrat also said it is normal in FISA applications not to name individuals who may be sources of information.

Winter Olympics 2018: Here are the athletes with New Jersey connections
While reaching a good height with the jump and the complexity of the tricks are important, a clean landing is critical as well. But it is that Olympics which helped propel Russia to where they are today at the Olympics: banned and marginalised, a pariah.

Marvel's latest dazzles with action and social commentary — Black Panther' review
It seems like there's a new Marvel or DC flick dropping every summer - not to mention winter weekend. Black Monarchy on West Utica street in Buffalo's West Side is a store that celebrates diversity.

Jones pleased with 'positive' England victory
England won a scrum penalty which Owen Farrell kicked deep into Italy territory to give England an attacking line-out. After 24 in succession, England victories over Italy could be defined as something of a formality.

Jamie Carragher: Liverpool can't afford to lose Mohamed Salah
He affected the whole way they played and he's affected the whole way that Liverpool have played as well. After holding their lead for over three-quarters of the game, Liverpool were soon back to a stalemate.

Republicans charge bias, legal 'breakdown' in contentious memo on Russia probe
Yet the memo itself is undermined by the fact that it is a Republican product, written by a congressman known to be very partisan. Trump's job approval rating is 41.9 percent, according to the Real Clear Politics average of various polls.

Memo Shows Comey FBI, Obama DOJ & Clinton Campaign 'Colluded' Against Trump — Ingraham
Democrats disputed that claim on Friday, but Nunes stood by it in his interview with Baier. "The work you do is what will endure". Trump's job approval rating is 41.9 percent, according to the Real Clear Politics average of various polls.

State of the Union garners Trump rare style points — Editorial
Take-home pay is going up, while consumer confidence is at a 17-year high and unemployment at a 17-year low, Ryan said. During the speech, the President also highlighted a number of average Americans who have accomplished great things.

Apple iPhone Sales Down, Reports Record Quarter
This is also an all-time record along with the quarterly earnings per diluted share of $3.89, up 16 per cent. The company's various software and entertainment offerings brought in $8.5 billion, up 18% from a year ago.

Tottenham's penalties against Liverpool were both offside — Clattenburg
Those players lift the others". "At the moment, he is probably the best striker in Europe ", Rooney continued. Only Alan Shearer, who did it in 124 matches, has got there faster.

Chelsea legend Graeme Le Saux makes huge Antonio Conte sack claim
Ahead of the 2017-18 season, Chelsea had replaced Costa with Spanish striker Alvaro Morata arriving from Real Madrid . Chelsea visit Watford tonight looking to bounce back from last week's calamitous 3-0 home defeat by Bournemouth .


Mas noticias

Noticias
Mas noticias