Stocks dropped sharply for a second session Wednesday, with the S&P 500 and Nasdaq seeing their biggest losses in nearly five weeks, as the provisional budget deal in Washington raised speculation that the Federal Reserve could pull back on its stimulus program soon
The Dow Jones Industrial Average slumped 129.60 points, or 0.81 percent, to finish at 15,843.53. Nike and UnitedHealth led the blue-chip laggards, while Visa climbed.
The S&P 500 dropped 20.40 points, or 1.13 percent, to close at 1,782.22. The tech-heavy Nasdaq fell 56.68 points, or 1.40 percent, to end at 4,003.81.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, spiked above 15.
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STI down for 7th straight session
ReplyDeleteBanks lead falls this time; index loses 128 points for the period, 3.4% deficit for the year
By R Sivanithy sivan@sph.com.sg
Senior Correspondent
Straits Times Index yesterday dropped for the seventh consecutive session, this time losing 20.98 points to close at 3,060.74 - PHOTO: BLOOMBERG
THE Straits Times Index yesterday dropped for the seventh consecutive session, this time losing 20.98 points to close at 3,060.74. This brings the total loss for the seven trading days to 128 points or 4 per cent and its loss for 2013 to 3.4 per cent.
This time it was the banks which led the decline, while close behind were stocks from the Jardine group and property counters. Turnover in the 30 STI components amounted to $684 million, which was 68 per cent of the total $1.06 billion done by the whole market. Excluding warrants, there were 106 rises versus 289 falls.
There was no new theme for the selling. Dealers said the market continued to be weighed down by the same reasons that have led most Asian markets lower over the past 2-3 months, namely the US Federal Reserve tapering its money printing and slowing growth led by China.
These concerns have led most investment houses to recommend a "buy" on developed markets which are expected to lead global growth next year. Most of these recommendations, while rating Wall Street and Europe as an "overweight", have also rated Asia as an "underweight".
Why like that?
ReplyDeleteCapital flight back to US & EURO?