Friday, 21 September, 2018

Wall Street succumbs to rising bond yields, sinking health stocks

Reuters Reuters
Nellie Chapman | 31 January, 2018, 04:17

US stocks opened with broad losses Tuesday, with the Dow Jones Industrial Average dropping more than 200 points as rising bond yields contributed to a global equity selloff. The S&P 500 decreased 31.10 points, or 1.09 percent, to 2,822.43. Moves lower come ahead of President Donald Trump's State of the Union speech later Tuesday and as investors await the conclusion of the Federal Reserve's two-day policy meeting.

The 364-point dive, or 1.4%, to 26,074, was the Dow's biggest single-day loss since May. The 352-point drop to its session low was the Dow's steepest intraday point drop since May 17.

The CBOE Volatility index, widely considered the best fear gauge in the stock market, rose 6.86 percent to 14.79. The S&P 500 fell 7 points, or 0.23%, to 2,866.

The energy index fell 1.54 percent as USA crude prices tumbled 2 percent on ongoing evidence of rising US crude output. Trump is expected to focus on trade and the economy, among other themes.

Winners and Losers: Wynn Resorts sunk 9.32 percent as the hotel and casino company continues to feel the heat from the Wall Street Journal's reporting of sexual misconduct allegations against CEO Steve Wynn.

Apple was down another 0.6 percent, still feeling the effects of news that the company will halve production of its $999 iPhone X smartphone.

Declining issues outnumbered advancing ones on the NYSE by a 4.17-to-1 ratio; on Nasdaq, a 2.98-to-1 ratio favored decliners. The Nasdaq Composite Index was down 20 points, or 0.3%, to 7,485.