The sell-off in U.S. stocks picked up steam, with the S&P 500 sliding to the verge of a correction, the Nasdaq Composite erasing its gain for the year, and the Dow Jones Industrial Average shedding more than 400 points.
The sell-off in U.S. stocks picked up steam, with investors dumping the tech darlings that carried the bull market for much of its record run. Treasuries advanced with the yen. The S&P 500 slid to the verge of a correction, the Nasdaq Composite erased its gain for the year, and the Dow Jones Industrial Average shed more than 400 points as angst spread across global equity markets.
Investors pointed to escalating trade tension, signs of a looming slowdown in retail growth and cracks in the credit market, but an indiscriminate dumping of the year’s biggest winners still largely characterized the action.
Here are some of the equity moves:
Apple fell 4.3 percent to bring its plunge from a recent high past 20 percent, Amazon.com, Facebook and Netflix fell at least 2.5 percent. Chipmakers plunged. AMD, Micron and Nvidia sank more than 5 percent, with Nvidia’s rout since an Oct. 1 high now more than 50 percent. Square lost 10 percent, Snap fell 3 percent and Twitter lost 6 percent. Boeing fell 4 percent to the brink of a bear market. Target plunged 14 percent after its sales forecast disappointed; Kohl’s and L Brands also sank on weak earnings.
In bond markets, the Treasuries 10-year note yield fell to its lowest level since September. A credit-default swap index of mostly high-yield issuers in Europe reached the highest in almost two years, signaling renewed nerves about the asset class.
The sell-off in momentum stocks continued after the downdraft last month, with the latest blow coming from renewed concern that demand for Apple’s iPhones has slowed. At the same time, the Trump administration is considering tighter curbs on technology exports, a step that Deutsche Bank AG says would have a “profound and long lasting adverse impact” on relations between the U.S. and China.
And calls for dip-buying have turned into notes of caution. Goldman Sachs recommended investors hold more cash. Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund firm, said that investors should expect low returns for a long time after enjoying years of low interest rates from central-bank stimulus.
“The easy days of long, global bull markets where you can invest in a tracker for five basis points — I say this as an active fund manager — and watch the thing go up, I think those days are gone,” Gerry Grimstone, chairman of Barclays Bank PLC and Standard Life Aberdeen PLC, said in an interview on Bloomberg Television. “It’s going to be a move back to value investing, and back to the Warren Buffett-style of investment.”
It’s a shortened trading week because of the Thanksgiving holiday in the U.S. on Thursday. In addition, Black Friday, the day after Thanksgiving, marks the traditional start to the U.S. holiday shopping season.
These are the main moves in markets:
The S&P 500 fell 1.4 percent at 9:31 a.m. in New York. The Stoxx Europe 600 Index sank 1.1 percent, hitting the lowest in more than 23 months. The U.K.’s FTSE 100 Index declined 0.6 percent to the lowest in more than three weeks on the largest drop in more than a week. Germany’s DAX Index declined 1.5 percent, reaching the lowest in more than 23 months on its fifth straight decline and the biggest drop in more than a week. The MSCI Emerging Market Index sank 1.3 percent, the first retreat in a week and the largest tumble in more than a week. The MSCI Asia Pacific Index sank 1 percent, the biggest dip in more than a week.
The Bloomberg Dollar Spot Index gained 0.2 percent, the largest rise in more than a week. The euro declined 0.3 percent to $1.1415, the first retreat in more than a week. The British pound fell 0.1 percent to $1.2839. The Japanese yen increased 0.2 percent to 112.34 per dollar, the strongest in more than three weeks.
The yield on 10-year Treasuries declined three basis points to 3.04 percent, hitting the lowest in two months with its eighth straight decline. Germany’s 10-year yield dipped two basis points to 0.35 percent, the lowest in 11 weeks. Britain’s 10-year yield advanced one basis point to 1.387 percent. Italy’s 10-year yield climbed two basis points to 3.614 percent, the highest in more than a month.
West Texas Intermediate crude fell 1.9 percent to $56.14 a barrel, the lowest in a week on the largest fall in a week. Gold advanced 0.3 percent to $1,228.09 an ounce, reaching the highest in more than two weeks on its sixth consecutive advance.