US stocks suffer worst loss in 8 months amid rising interest rates, tech hit hardest
US stock exchanges recorded biggest losses in 8 months as rising interest rates made investors flee risky stocks. The S&P, Dow Jones and Nasdaq plunged between 3 and 4 percent. Technology shares were among the worst affected.
The S&P 500 fell almost 92 points, or just over 3 percent, the biggest daily loss since February this year. Meanwhile, the Nasdaq Composite dropped 315.97 points, or 4.08 percent, and the Dow Jones Industrial Average was down 831 points, or 3.15 percent.
Rising interest rates by the Federal Reserve drove US Treasury yields to 7-year highs, while Hurricane Michael’s landfall in Florida stoked fears of impact on energy companies, according to market analysts.
Technology stocks dropped 3 percent, with Netflix, Amazon and Google parent Alphabet leading the way. The energy sector was close behind with a 2.9 percent loss, as oil extraction in the Gulf of Mexico shutting down due to the hurricane.
The latest sell-off comes after months of continuous stock market growth stoked by the investors’ belief in “American exceptionalism,” according to an analyst from investment bank Morgan Stanley.
Skeptics like former Congressman Ron Paul, however, warned that the US is approaching “the biggest bubble in the history of mankind.”
“It can be pretty well validated by looking at monetary history that when you inflate the currency, distort interest rates, and live beyond your means and spend too much, there has to be an adjustment,” Paul told RT on Tuesday, predicting that a stock market crash is just a matter of time.
You may be interested
U.S. Ambassador to Greece Pyatt: The path to the acquisition of the F-35 is a multi-year processPanos - Dec 01, 2020
U.S. Ambassador to Greece Geoffrey R. Pyatt said in a message that the US defence relationship with Greece is at…
Greece confirms 1,044 new coronavirus cases on Monday, 85 fatalities; 600 in ICUsPanos - Dec 01, 2020
Greece confirmed 1,044 new coronavirus cases on Monday, of which 9 were identified at the country's entry points, said the…
Turkish survey vessel Oruc Reis returns to its port, as Greece calls on EU to impose sanctions on Turkeymakis - Nov 30, 2020
After 49 days of seismic surveys in a large sea area that included the Greek continental shelf, Turkish research ship…