US Stocks Tumble in Early Trade after Global Markets Slide

US Stocks Tumble in Early Trade after Global Markets Slide

US Stocks Tumble in Early Trade after Global Markets Slide

Major indexes pulled back sharply in early trading Tuesday, wiping almost 550 points off the Dow Jones Industrial Average.

Banks, health care and industrial companies also took heavy losses, outweighing gains by utilities and other high-dividend stocks.

Facebook, Amazon, Netflix and Alphabet were all trading lower as a result, suffering losses of five percent or more.

There have also been disappointing quarterly earnings from several big-name companies, worldwide condemnation of Saudi Arabia - a major oil producer - over the killing of journalist Jamal Khashoggi, and concerns that the US-China trade war is causing the global economy to slow down.

The benchmark extended its October rout to nearly 9 percent, making it the worst month since February 2009, while the Nasdaq Composite Index fell into a correction.

The Dow Jones Industrial Average fell 608.01 points, or 2.41 per cent, to 24,583.42, the S&P 500 lost 84.59 points, or 3.09 per cent, to 2,656.1 and the Nasdaq Composite dropped 329.14 points, or 4.43 per cent, to 7,108.40. The Dow lost 401 points, or 1.6 percent, to 24,914.

3M Co slid 4.4 percent after cutting its full-year profit outlook due to foreign currency-related challenges.

On Wednesday, data showed sales of new US single-family homes fell to a near two-year low in September, the latest sign that rising mortgage rates and higher prices were hurting demand for housing.

Caterpillar tumbled 5.8 percent after the heavy-duty equipment maker maintained its 2018 earnings forecast, after having raised it in the previous two quarters.

Traders also bid up shares in McDonald's after the fast-food chain reported third-quarter results that topped analysts' forecasts.

The Russell 2000 index of smaller-company stocks gave up 12.91 points, or 0.8 percent, to 1,526.59. Brent crude, used to price worldwide oils, slid 0.4 percent to $76.17 a barrel in London.

The Chicago Board Options Exchange's volatility index, known as the VIX, or fear index, jumped 14 percent to its highest level in two weeks.

Texas Instruments dropped 8.5 percent, helping pull the Philadelphia Semiconductor index down 6.6 percent in its biggest daily percentage drop since October 2014.

Despite the tumbling stock prices, the USA economy looks solid.

European Central Bank policy makers could on Thursday confirm that asset purchases will end this year, reiterating its pledge to keep interest rates at record lows through summer 2019. The stock gained 6.2 percent to $176.91.

The dollar weakened to 112.44 yen from 112.47 yen on Tuesday. It was down 62 points, or 0.3 percent, to 25,254. The euro fell to $1.1387 from $1.1467.

Hong Kong's Hang Seng index sank 3.1 percent. Copper dropped 1 percent to $2.76 a pound. Britain's FTSE 100 lost 1.2 percent.

Futures on the Nikkei 225 Stock Average were down 2.7 percent in Singapore.

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