Nasdaq confirms correction while S&P 500 and Dow erase 2018 gains

Nasdaq confirms correction while S&P 500 and Dow erase 2018 gains

Nasdaq confirms correction while S&P 500 and Dow erase 2018 gains

Ford, which is struggling with sales in China, rose 9.9 percent as its earnings report raised hopes for a strong finish to the year, bolstering gains in the consumer discretionary sector .SPLRCD .

US stocks plunged again on Wednesday, confirming a correction for the Nasdaq and erasing the Dow and the S&P 500's gains for the year, as disappointing forecasts from chipmakers and weak home sales data fueled jitters about economic and profit growth. The Dow Jones fell 606 points or 2.4 percent to 24,583, while the S&P 500 had its sixth consecutive losing session, dropping 84.59 points or 3.1 percent to 2,656. It was up 520 earlier.

The Nasdaq slid 281.81 points, or 3.8 percent. The yield on the 10-year Treasury note rose to 3.14 percent from 3.12 percent.

Investors have grown concerned in recent weeks that Corporate America's tax cut-fuelled earnings growth this year will fade in coming months amid rising inflation, uncertainty over the escalating trade conflict between the USA and China and the likelihood of higher interest rates. The benchmark KOSPI dropped 36 points, or percent, to close at 2,027. The Russell 2000 index of smaller-company stocks gave up 19 points, or 1.3 per cent, to 1,480.

"When we get beyond earnings season and investors are wondering what now can drive the market higher or lower, knowing that we had a strong earnings season and companies did not lower their guidance very much will provide some support for stocks", she said.

Trading has turned volatile on Wall Street this month following an unusually placid summer. Helped by tax cuts, the economy expanded at a 4.2 percent annual pace from April through June, fastest in almost four years.

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Biden has also criticized Trump, as recently as last week, saying Trump may not "know what he's doing" and coddles dictators. CNN is known for its robust coverage of the Trump administration and for constantly provoking the ire of the president.

The Dow tumbled 2.4 per cent to 24,583.42. It was up 512 minutes earlier.

TEARS IN TOYLAND: Mattel dropped 3.7 percent to $13.33 as investors reacted to the toy maker's latest quarterly snapshot. By mid-morning it was down 2.9 per cent at 21,443.72.

Tesla soared 8.3 percent after reporting its biggest-ever profit, and appliance maker Whirlpool rose 5.8 percent. "We also reached a potential peak for earnings", said Nate Thooft, senior managing director at Manulife Mutual Funds, told AFP news agency, "Companies that show marginal weakness take a beating". The Dow sank 1.7 percent and the S&P 2.3 percent, with the S&P's session low taking it more than 10 percent below its September 20 all-time closing high. The Shanghai Composite index slipped 1.6 per cent to 2,561.36 and Hong Kong's Hang Seng index skidded 1.8 per cent to 24,785.68. The Nasdaq has taken bigger losses than other USA indexes in recent weeks.

Big earnings gains for several US companies helped encourage investors to start hitting the "buy" button again. Shares were lower in most markets apart from Indonesia. The 30-stock index rose 71 points, or 0.3 percent, to 25,259. That, along with gains in chipmakers, helped technology stocks .SPLRCT rise 2.89 percent.

The Nasdaq registered its biggest daily percentage gain since March 26.

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