U.S. stocks suffer worst week in seven years


The Dow Jones Industrial Average dropped 464 points Thursday, bringing its losses to more than 1,700 points since Friday.

The S&P 500 index slumped 39.54 points, or 1.6 percent, to 2,467.42.

The Nasdaq also set a 10-year record with a 8.4 percent plunge this week, the worst since November 2008.

Major U.S. indexes are now 16 to 26 percent below the peaks they reached in the summer and early fall.

The S&P 500 lost 183.33 points, or 7.1 per cent.

Investors fear a recession is coming, and barring huge gains during the upcoming holiday period, when trading is usually quiet, this will be the worst December for stocks since the 1930s.

The Nasdaq's fall reflects a sharp move by investors away from what had been the market's leaders - the so-called FAANG group of five favorite technology and internet stocks.

Out of the 11 major S&P 500 sectors, only the Technology and the Industrials are staying in the negative territory.

The Nasdaq is down 382.26 points, or 5.5 percent.

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The increasing likelihood of a partial government shutdown injected further pessimism into U.S. stock markets.

The selling in the last two days came after the Federal Reserve raised interest rates for the fourth time this year and signaled it was likely to continue raising rates next year. What do the bond markets tell us about how investors are feeling about the economy?

Declining issues outnumbered advancers for a 2.52-to-1 ratio on the NYSE and a 3.32-to-1 ratio on the Nasdaq.

Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, said investors felt Fed Chairman Jerome Powell came off as unconcerned about the state of the USA economy, despite deepening worries on Wall Street that growth could slow even more in 2019 and 2020.

Benchmark 10-year Treasury notes last rose 2/32 in price to yield 2.783 percent, from 2.789 percent late on Thursday. The Dow also continued its week-long decline, closing at 22,445 after a wild spike that saw it shoot up 300 points before sinking below zero again.

Furthermore, another drop in oil prices drove down energy stocks.

The major US indexes fell 7 percent this week and they've sunk more than 12 percent in December.

On Friday the price of US crude slipped 0.6 percent to $45.59 a barrel in NY.

As recently as October, yields had been at a seven-year high of 3.261 percent.