US stock markets continued their wild ride on Friday, ending one of the most volatile weeks in trading since the financial crisis as international stock markets continued to fall, spooked by fears of more rapidly rising interest rates. The Dow Jones Industrial Average, which lost more than, rose 30 points on Friday morning as the more broadly based S P 500 and the tech-heavy Nasdaq also moved into the black only to shortly lose those gains. By noon the Dow was down over 200 points and then rallied to end up over 300 points. Despite the rally, the Dow fell 5% over the week, one of its biggest one-week drops since the recession. World stock markets have dropped sharply from recent record highs over the past week. The rout started last Friday after the latest US jobs report was released. The report indicated stronger-than-expected growth in wages, adding pressure on the Federal Reserve to raise rates in order to head off inflation. In London, the FTSE 100 closed down 1%, while GermanyБs DAX and FranceБs CAC also lost ground. The moves came after, with TokyoБs Nikkei 225 down 2. 3% and Hong KongБs Hang Seng down 3. 1%. The sell-off extended to oil prices, with US crude futures down $1. 98, or 3. 24%, at $59. 18 a barrel on the New York mercantile exchange. The marketБs fluctuations leading into Friday. Peter Cardillo, chief market economist at First Standard Financial in New York, said the volatility in financial markets was likely to continue. БThis is typical of a market that has not yet fully corrected,Б he said. БWhat we are seeing here is uncertainty and investors selling into the rallies. Б
A jump in the yield on 10-year US treasury bonds Б a key indicator of inflationary pressure and the likelihood of higher interest rates Б appears to be a major factor in the latest sell-off.
Early on Friday morning Congress signed a to keep the US government open and Cardillo said that move too was likely to add to volatility. The general economy remains robust with strong jobs growth and corporate earning. БBut what has changed is that the president has signed a new stopgap bill to reopen government and with that comes a price Б a lot of spending. Markets are fearful that increasing deficits mean a more hawkish Fed. Б The deal comes after Donald Trump pushed through an overhaul of the US tax system that is expected to cost $1. 5tn. The non-partisan Committee for a Responsible Federal Budget calculates that the new funding deal adds $420bn with interest to the national debt over 10 years and that if it and the tax cuts are extended, the USБs annual deficit is on course to reach $2. 1tn by 2027. Marc Goldwein, senior vice-president of the Committee for a Responsible Federal Budget, said the US government was Бplaying with fireБ. In the near term, he said, it was hard to speculate what drove Бevery bump and bounceБ in the markets but increasing deficits over the long term were likely to have major ramifications for the stock market and the wider US economy. БThese kinds of debt level are unsustainable,Б he said. are now 10% down from the highs they reached in late January Б a drop known as a correction. Markets would have to fall another 10% for them to enter a Бbear marketБ where pessimism outweighs optimism in the financial markets. ItБs been a wild ride for investors in the United States and worldwide in recent days. A market selloff that was sparked last week and accelerated on Monday hit the US and has across global markets.
The Dow Jones Industrial Average saw its on Monday, and the S P 500 had its worst day since 2011. Market volatility, which has been in recent months, spiked, with the Cboe Volatility Index, commonly considered a gauge of investor fear, jumping by more than 100 percent. subsequently tumbled, with JapanБs Nikkei Stock Average declining 4. 7 percent on Tuesday, its since the UK Brexit vote in 2016, and Hong KongБs Hang Seng seeing its biggest point decline since early 2008. The Stoxx Europe 600 and the UKБs FTSE 100 declined about 2 percent as well. The Dow dropped more than 500 points at market open on Tuesday before recovering and briefly entering positive territory mid-morning. Major US equities indexes have continued to bounce, and thereБs no sign of when market jitters will settle down. БDonБt assume the worst is past,Б Nick Colas, cofounder of Datatrek Research, a market insight and research firm in New York, wrote in a Tuesday note. БWe remain positive on US stocks but recognize that viewpoint will likely leave some scar tissue once the current volatility has passed. Б In case youБre just tuning in to the current market rollercoaster, hereБs a broad look at whatБs going on, by the numbers: 1,175 The number of points the Dow Jones Industrial Average fell on Monday, February 5, its biggest one-day point drop ever. The previous record was a 777-point decline, set on September 29, 2008. The amount by which the Cboe Volatility Index, commonly considered a gauge of investor fear, increased on Monday, jumping from 18 at the start of the day to 37. ItБs the indexБs biggest ever one-day jump.
Market volatility has been historically low for months, and there is speculation that volatility are part of what spurred MondayБs meltdown. 4. 1 percent The amount by which the S P 500 declined on Monday. The Dow fell by 4. 6 percent, and the Nasdaq 3. 8 percent. 2. 71 percent The yield on benchmark at the end of trading on Monday, down from 2. 85 percent on Friday, the highest level since January 2014. How much the S P 500 has to fall by in a single day before Бcircuit breakersБ Б or small pauses in trading regulators can impose to prevent a stock market crash from occurring. The amount an index such as the S P 500, Dow, or Nasdaq would have to decline from its previous high to mark a stock market correction. The estimated amount global markets saw after reaching record highs in January. The number of points JapanБs Nikkei 225 fell on Tuesday, a 4. 7 percent dip. ThatБs its steepest decline since Brexit. Hong KongБs Hang Seng index fell by 5. 1 percent, and the Stoxx Europe 600 and the UKБs FTSE 100 fell by about 2 percent. 18,332 Where the Dow closed on Election Day 2016, when Donald Trump was elected president. It closed Monday at 24,345. $7,000 Approximately what, a sort of hyper-amplified symbol of investor exuberance, is worth. It was trading at more than $19,000 in December. 2. 9 percent Year-over-year wage growth in January, according to FridayБs jobs report. That signals a tightening labor market Б and that increased inflation might be on the horizon. That could push the Federal Reserve to increase interest rates faster than anticipated, which is. How long itБs been since President Trump bragged that the Бstock market has smashed one record after anotherБ at the.