Published: Fri, November 23, 2018
Money | By Wilma Wheeler

Wild Ride: US Stock Markets See Dramatic Drop Again

Wild Ride: US Stock Markets See Dramatic Drop Again

Crude is on track for its biggest loss in three years.

It sets up the Australian sharemarket for steep falls to open the session on Wednesday, with futures pointing to a 52-point, or 0.9 per cent drop, at the open.

All major S&P 500 sectors tumbled led by energy, industrials and financials.

The Nasdaq lost 60 points, or 0.8 percent, to 6,968.

Amazon dropped to $1,509 and Nike slid 3.2 percent to $72.36.

Retail and tech stocks were some of worst performers in early trading.

The only stocks that rose were utilities and other safe-play companies. They've also sought the safety of US Treasuries.

The S&P 500 index fell 45 points, or 1.7 percent, to 2,690.

The Dow Jones Industrial Average was down 551.80 points, or 2.21 percent, to 24,465.64.

Investors lately have been quick to bail out of companies that show rising costs are eating into profits, and that was the case with retailers Tuesday.

Stocks are opening sharply lower on Wall Street as a rout in major technology companies continued.

Talks between the United States and China are continuing ahead of a meeting between Chinese President Xi Jinping and President Trump planned for the G-20 summit this month.

Nissan said its chairman, Carlos Ghosn, was arrested Monday and will be dismissed from the company after allegedly under-reporting his income. "A lot of the companies that are front and center (like) Alphabet, Apple, IBM. could be significantly limited in the way they export their technology". Apple fell 3.7 percent to $178.97 and is down 22.3 percent from the peak it reached October 3, though it's still up for the year.

The stock has lost half its value since November 8 in spite of a big rally on Friday.

In Europe, Germany's DAX index lost 1.6 percent and France's CAC 40 shed 1.2 percent.

The Nasdaq composite skidded 219 points, or 3 percent, to 7,028. Hong Kong's Hang Seng shed 2 percent to 25,840.34 and Seoul's Kospi retreated 0.9 percent to 2,082.58.

Apple sank 2.8 percent and Microsoft lost 2.2 percent.

The oil prices plummeted on Tuesday, as U.S. President Donald Trump reaffirmed Saudi Arabia as "a great ally" and signaled it won't punish Saudi crown prince over journalist Jamal Khashoggi's killing.

Brent crude, used to price worldwide oils, was little changed at $66.79 a barrel in London.

Investors fretted about overvalued tech stocks, rising interest rates, a slowdown in global growth and an ongoing trade fight between the USA and China.

Bond prices were steady.

The Dow Jones Industrial Average is one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.

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The dollar rose to ¥112.80 from ¥112.54. The euro fell to $US1.1370 from $US1.1453.

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