Dow Jones industrials plunge 1000 points, bringing the index down 10 percent

Dow Jones industrials plunge 1000 points, bringing the index down 10 percent

The up-and-down swings followed a drop of 10 percent from the latest record highs set only weeks ago.

The S&P 500 has lost 7.7 per cent this week alone, its worst weekly performance since the peak of financial crisis in 2008.

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

The Dow Jones Industrial Average fell 19.42 points, or 0.08 percent, to 24,893.35.

The Dow closed 1,033 points lower on Thursday, the second day of the week it has experienced a four-digit loss. The broad market S&P 500 finished down 101 points, at 2,581.

Bond prices didn't move much.

After Monday, which saw the biggest one-day drop in six years - now blamed on a combination of interest-rate fears, computer-driven trading and the effect of volatility funds - the results restored a measure of confidence. Other benchmark indexes kept their losses below 2 percent.

Financial analysts regard corrections as a normal event but say the latest unusually abrupt plunge might have been triggered by a combination of events that rattled investors.

Investors remain fearful that signs of rising inflation and higher interest rates could stifle the bull market that has pushed stocks to record high after record high in recent years.

According to James G. Devine, a professor of economics, it is likely that stock prices were too high before the crash and this is only an adjustment, or "correction", toward what they should have been.

Bulls are saying that strong United States corporate earnings, including a boost from President Donald Trump's tax cuts, will result in the continued growth of U.S. stock indices.

This is a common trend as the need for cash grows during this period - a time when Chinese companies typically pay bonuses and people also traditionally exchange cash and gifts during the period.

Corrections of up to 15 percent "are normal", said Oliver. The country's 10-year yield almost surpassed a four-year high of 2.885 percent in the morning trading on Thursday, a level that helped trigger a global sell-off in equity markets on Monday, reports Xinhua news agency.

After appearing to have begun recovery from the early week sell-off, the markets took another big dip Thursday.

Level 1 and 2 halts can only happen once per trading day.

An improving outlook internationally is adding to pressure on global fixed income markets. The Nasdaq was up 48 points, or 0.7 percent, to 6,825.

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