U.S. stocks close sharply lower on rate worries

07 March, 2018, 11:56 | Author: Sheri Evans
  • Reuters

As a candidate, Trump campaigned on an "America First" trade policy, and a big fear for investors has been that increasingly nationalistic governments will impose barriers that hurt the global economy and trade, as well as profits for US exporters.

The SPI had been looking at a fall of 33 points just before Trump's announcement just after 5 am Sydney time, this then surged to a fall of 61 points, or more than 1% at the close. The Nasdaq fell 92 points, or 1.3 percent, to 7,180.

The Dow Jones industrial average sank 380 points, or 1.5 percent, to 25,029.

The Fed's chairman, Jerome Powell, jolted markets on Tuesday, when he said that he's feeling more optimistic about the US economy.

Earlier in the week, Powell's testimony helped send Treasury yields jumping and stocks tumbling when he said that he's feeling more optimistic about the economy. His address to congress signalled the Fed will keep raising interest rates to contain inflation.

Markets in South Korea and Thailand were closed for holidays on Thursday.

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Le Drian's team has made it clear to Tehran that he is no "emissary of Donald Trump", and wants to preserve the nuclear deal. The deal took effect in January 2016.

Industrial companies like Boeing and Caterpillar that use steel and aluminum fell sharply, as did exporters like Apple whose overseas sales could be hurt by a trade war.

Shares of steelmakers swung wildly amid speculation that the USA government would impose tariffs or quotas on steel and aluminum imports. The Nasdaq composite was up 10 points, or 0.1 percent, to 7,283.

The index lost 3.9 percent in February.

This also lifted the yield for U.S. 10 year government bonds, a global benchmark for commercial lending, past a four-year high of 2.92 per cent.

The S&P 500 index finished down1.3% at 2,677, falling beneath a psychologically significant level at 2,678. Visit MarketWatch.com for more information on this news. It was down as much as 10 percent earlier.

Stocks flipped between modest losses and gains Thursday as Powell told a Senate committee that the central bank continues to plan a gradual rise in interest rates.

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Up to 130 teams of engineers and technicians are finding and fixing leaks across the region, the spokesman said. Hundreds of customers took to Twitter to highlight problems with their water supply.

BUSY ECONOMIC DAY: A raft of reports on the economy provided a mixed picture. It had only four such days a year ago.

Other reports showed that manufacturing is growing at its fastest rate in almost 14 years, while construction spending was weaker than economists expected last month.

The biggest loss in the S&P 500 came from Foot Locker, which plunged after it said sales trends were weaker last quarter than analysts expected.

In the commodities markets, benchmark USA crude rose 26 cents to settle at $61.25 per barrel. Brent crude, the worldwide standard, lost 62 cents to $64.11 per barrel.

The dollar dipped to 106.24from 106.66 yen late Wednesday. The euro rose to $1.2331 from $1.2255, and the British pound rose to $1.3790 from $1.3768.

OVERSEAS: France's CAC 40 fell 1.1 percent and Germany's DAX was down 2 percent. London's FTSE 100 was down 0.7% in afternoon trade. In Asia, Japan's Nikkei 225 lost 1.6 percent and Hong Kong's Hang Seng rose 0.6 percent.

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