Dow plunges 531 points
Correction threatens Wall Street's six-year bull run.
Hot Topic
Hawke’s Bay
Stocks plummeted on global-growth fears for a second straight day Friday (Saturday NZ time) in a plunge that dragged the Dow industrials into correction territory (defined as 10% below a recent high).
The steep decline over two days threatens to end what has been a six-year bull run for Wall Street, The New York Times says.
The Dow industrials lost 530.94 points, or 3.1%, to close at 16,459.75, putting it in correction territory.
The S&P 500 dropped 64.84 points, or 3.2%, to close at 1970.89. The Nasdaq Composite fell 3.5%, or 171.45 points, to 4706.04.
The Dow’s 1000-point drop this week was the largest weekly drop since the week ended Oct. 10, 2008.
US oil prices also briefly dropped below $40 a barrel on Friday, a level not seen since the financial crisis.
Signs of a sharp slowdown in the world’s second-largest economy have unnerved investors since Beijing surprised markets last week by devaluing its currency. Shares in the US, Asia and Europe have tumbled, along with commodity prices as investors fretted about waning Chinese demand just as supplies are surging, the Wall Street Journal reports.
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Dow plunges 531 points
50809