Dow Plunges 1175, The Biggest Point Drop In History

GETTYMarkets around the world are suffering heavy losses

GETTYMarkets around the world are suffering heavy losses

CNN-For the second time this week, the Dow plunged more than 1,000 points.

USA stocks plunged on Thursday in another dramatic trading session, confirming a correction for the market that has thrown its almost nine-year bull run off course.

"Whilst the recent declines in the US have attracted the lion's share of attention, the major benchmarks have actually [performed] relatively well compared to several other worldwide indices in recent sessions", said David Cheetham, chief market analyst at the United Kingdom brokerage, XTB.

Asian stocks are coming under heavy selling pressure, with benchmark indexes in China, Hong Kong, Japan and South Korea losing 2-5 percent, as the downtrend in oil prices added to worries over higher US bond yields. The Nasdaq composite added 97.33 points, or 1.4 percent, to 6,874.49.

Despite the heavy losses this week, the Dow remains up 36% since President Trump's election.

The pullback came amid another spurt higher in Treasury bond yields, a focal point for investors concerned that the Fed may accelerate rate hikes if inflation rises suddenly. The Russell 2000 index of smaller-company stocks gave up 5 points, or 0.3 percent, to 1,485. Britain's FTSE-100 Index fell 1.5 percent and Germany's DAX plunged 2.6 percent.

The S&P 500 ended down 3.8 percent and the Dow ended down 4.2 percent.

Tuesday's rebound came a day after a steep selloff that brought the biggest percentage daily declines for the S&P 500 and the Dow since August 2011 and a near 1,600 point intraday loss for the Dow.

The Dow Jones Industrial Average dropped by 1,032 points on Thursday, or 4.15 percent, closing at 23,860.46.

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The Dow Jones Industrial Average has yo-yoed from a historic loss on Monday to a 500-plus point gain on Tuesday.

The S&P 500 index showed 2 new 52-week highs and no new lows, while the Nasdaq recorded 13 new highs and 21 new lows.

The US volatility weighed on European trading on Thursday towards the close of the day, with European shares retreating in the final hour of trading. Brent crude, the global standard for oil prices, gave up 70 cents, or 1.1 percent, to $64.81 per barrel in London.

Benchmark 10-year notes last rose 1/32 in price to yield 2.8276 percent, from 2.832 percent late on Wednesday. A correction is not the same as a bear market, which is defined as when a stock index or individual stock falls 20 percent from its most-recent peak.

"It's been a insane period and today the market is probably just trying to find some footing", said John Lynch, chief investment strategist at LPL Financial in Charlotte, North Carolina.

Another problem following a strong jobs report Friday, investors becoming more anxious over hints of higher inflation and interest rates. "Also, if we see some stabilizing in interest rates and bond yields in particular, that would seem to indicate what's going on there has settled down".

Bitcoin fell again on February 6 by 12 percent and was valued below $6,000 for the first time in 2018.

Apple climbed 4.2 percent, while Microsoft and Amazon gained 3.8 percent each.

The dollar fell to 109.20 yen from 109.70 yen. The euro dipped to $1.2392 from $1.2399. Hong Kong's Hang Seng skidded 5.1 percent and South Korea's Kospi declined 1.5 percent.

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