US stocks plunged Wednesday as investors ramped up their selling of high-flying technology and internet stocks.
Technology stocks, the biggest winners in the market over the past year, took some of the worst losses.
"Two weeks ago this kind of news would not have affected the market", he said. That was its worst drop in eight months. The Dow Jones Industrial Average and the S&P 500 are both off 1.5% in recent trading, and the Nasdaq Composite is tumbling 2.3%. The benchmark index fell for the fifth straight day, which hadn't happened since just before the 2016 presidential election.
The small-cap Russell 2000 index, less sensitive than its larger peers to global worries such as trade and yields, was down 1 per cent at 1,605.60 points, below its 200-day moving average. Stocks had come close to big drops in the last few days, but each time they recovered some of their losses. The stock fell 16.8 percent to 49 cents.
A2 Milk Co dropped 6.7 per cent to $9.53, Pushpay Holdings sank 6.2 per cent to $3.50 and Synlait Milk fell 5.4 per cent to $9.15.
Tom Cahill of Ventura Wealth Management said investors were also unnerved by remarks from luxury company LVMH of a crackdown on some goods in China amid the country's bitter dispute with the United States. A lot of that was because of the so-called FAANG stocks - technology names such as Facebook, Amazon, Apple, Netflix and Google - flying into turbulence on Wednesday. Companies that sell non-essentials to consumers dropped 1.7 percent. Berkshire Hathaway dipped 4.7 percent to $213.10 and reinsurer Everest Re slid 5.1 percent to $217.73.
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The Aussie is buying 70.73 United States cents, up from 70.13 U.S. cents at Wednesday's close.
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In contrast, New Zealand's 10-year government bond recently traded at a yield of 2.67 per cent. And tech stocks got hit particularly hard.
Treasury yields rose again, tempting more investors away from stocks. The broader S&P 500 was down by even more, and had its worst day in more than six months.
Oil firms Hess Corp and Marathon Oil fell around 7 per cent as Chevron dropped 3 per cent ahead of the third-quarter earnings season. "Since the market bottomed in March 2009, it's been more than 10 years of growth stocks leading the way non-stop". Sears has closed hundreds of stores and sold several famous brands or put them on the block as it sees more customers abandon its stores.
But historically, a monthly move of one to two deviations, or 20 to 40 basis points now, would result in flat S&P 500 returns.