OctaFX | OctaFX Forex Broker
Open trading account
Back

Wall Street slumps to 2018 lows, Nasdaq erases 3%

  • Three major indexes pare early gains, suffer heavy losses.
  • Communication Services and Technology lead losses.
  • Threat of government shutdown weighs on sentiment.

After going up more than 1% in the early trade, major equity indexes lost traction and closed the day in their lowest level of the year as concerns over a government shutdown and worries about a possible economic slowdown weighed on the market sentiment. The CBOE Volatility Index, Wall Street's fear gauge, rose more than 5% on Friday and touched the 30 mark for the first time since February.

Earlier in the day, President Trump told reporters that there was a very good chance the government funding bill would get voted down in the Senate and added that they were ready for a "very long shutdown." Commenting on the market's reaction, "I think it's a confluence of all the known issues that the investors have been digesting for the last few weeks. We have the prospect of a government shutdown today. We have more shake ups within the Trump administration," Mike Loewengart, vice-president of investment strategy at E*TRADE Financial in New York, told Reuters.

The risk-sensitive sectors S&P 500 Communication Services and the S&P 500 Technology lost around 3% on the day. Additionally, the barrel of WTI closed the week below the $46 mark for the first time since July 2017 and the S&P 500 Energy Index dropped more than 1%.

The Dow Jones Industrial Average lost 416.09 points, or 1.82%, to 22,443.51, the S&P 500 erased 50.8 points, or 2.06%, to 2,416.62 and the Nasdaq Composite fell 195.41 points, or 3%, to 6,333.00. For the week, these three indexes dropped 6.87%, 7.05%, and 8.36%, respectively. Both the Dow Jones Industrial Average and the Nasdaq recorded their largest weekly percentage losses in nearly ten years.

USD/CAD: Likely drift back into the 1.30s in order to maintain competitiveness - CIBC

Analysts at CIBC, see that a partial recovery in global oil prices would allow the Bank of Canada to hike twice in the first half of 2019, giving the
Read more Previous

Forex today: Dollar and Yen attract safe haven flows, Wall Street down 2% as political and economic risks mount

The market is facing the U.S indictments of Chinese on cybercrimes which dim the outlook for the trade tariffs truce that ends March 1, lingering conc
Read more Next
Start livechat