Stocks plunge as global growth worries rise

Stocks on Wall Street slumped in the second-biggest loss this year as global growth worries knocked investor confidence.

The Dow Jones Industrial Average dropped 250.82 points, or 2%, to 12,573.57, while the S&P 500 index fell 2.2%, to 1325.51.

The Nasdaq Composite shed 2.4%, to 2859.09, snapping a five-session rally.

The Dow edged higher at the open but quickly turned red after Mid-Atlantic manufacturers said business conditions deteriorated sharply this month, according to the US Federal Reserve Bank of Philadelphia.

Aluminium company Alcoa fell 4.1% as the Dow's biggest decliner. Energy blue chips Exxon Mobil and Chevron each fell more than 3.4% as oil prices dropped below US$80 for the first time this year.

Traders also cited lingering disappointment that the Fed held off on announcing more aggressive stimulus measures on Wednesday.

Instead, it opted to extend Operation Twist, a programme where the central bank sells short-term Treasurys and buys longer-dated bonds to help tamp down long-term borrowing costs.

European markets turned lower. The Stoxx Europe 600 fell 0.5% to 248.40, four-day winning streak.

Most Asian stock markets fell on worries about the Chinese economy after the gauge of China's manufacturing activity showed more weakness.

Crude oil futures fell 4% to settle at $US78.20 a barrel, and gold futures shed 3.1% to $US1564.50 an ounce.

The US dollar rose against the euro and the yen.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6675 -0.0008 -0.12%
AUD 0.9406 -0.0003 -0.03%
EUR 0.5910 -0.0014 -0.24%
GBP 0.4593 -0.0009 -0.20%
HKD 5.1991 -0.0086 -0.17%
JPY 74.9720 -0.7140 -0.94%

Commods

Commodity Price Change Time
Gold Index 1194.6 -4.000 2016-02-10T00:
Oil Brent 31.5 0.520 2016-02-10T00:
Oil Nymex 27.5 -0.430 2016-02-10T00:
Silver Index 15.3 -0.170 2016-02-10T00:

Indices

Symbol Open High Last %
NZX 50 6019.5 6028.7 6019.5 -0.54%
NASDAQ 4318.3 4369.6 4268.8 0.35%
DAX 8887.9 8899.6 9017.3 -2.97%
DJI 16035.6 16201.9 16014.4 -0.62%
FTSE 5672.3 5672.3 5672.3 -2.60%
HKSE 18486.9 18627.5 19288.2 -3.85%
NI225 16127.9 16163.0 16085.4 -2.31%