Stock Markets Take Massive Hit. Dow Has 3rd-Biggest Drop in History
The Dow Jones Industrial Average plummeted over 830 points Wednesday — the third-largest point decline in history — as big tech stocks fell sharply.
All 30 Dow stocks were down, sending the index below 26,000 for the first time since the start of the month, CNN reported.
The S&P 500 plunged 3.3 percent, and the tech-heavy Nasdaq dropped more than 4 percent — its worst percentage decline since June 2016.
The fall in the market caused Wall Street’s “fear gauge,” or volatility index, to rise to its highest level since April, NBC News reported.
Among the big tech stocks that took a hit: Netflix plummeted 8.4 percent, Amazon dropped 6.2 percent, Google parent Alphabet plunged 5.1 percent, Apple fell 4.6 percent and Facebook was down 4.1 percent.
Stocks plunge, with the Dow down more than 800 points, as investors abandon tech shares https://t.co/2rlW2xVIbT
— The Wall Street Journal (@WSJ) October 10, 2018
Fox Business said investors were motivated in part by rising interest rates and increasing trade tensions between the U.S. and China.
President Donald Trump responded to the market declines Wednesday by criticizing the Federal Reserve for its rate increases.
“The Fed is making a mistake,” Trump told reporters, according to Bloomberg. “They’re so tight. I think the Fed has gone crazy.”
Last month, the president declared he was “not happy” when the central bank raised interest rates for the third time in 2018.
Each of the top three largest daily point losses in Dow history have occurred this year.
Feb 5, 2018 – DOWN 1,175.21
Feb 8, 2018 – DOWN 1,032.89
Oct 10, 2018 – DOWN 831.83(Two of the Dow's 5 biggest gain days have also occurred in 2018 — in Feb and March.)
— Steven Portnoy (@stevenportnoy) October 10, 2018
White House press secretary Sarah Sanders downplayed the stock sell-off, saying the U.S. economy remains in great shape under Trump.
After the Dow fell over 830 points today, the White House issues this statement: pic.twitter.com/ge6Mb0XgR1
— Kaitlan Collins (@kaitlancollins) October 10, 2018
“The fundamentals and future of the U.S. economy remain incredibly strong. … President Trump’s economic policies are the reasons for these historic successes and they have created a solid base for continued growth,” Sanders said in a statement Wednesday.
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.
