United States stocks plunge further, Dow drops 830 points

Stocks fell Wednesday as Wall Street sweats over global growth prospects and a bond selloff.

During the regular session, the S&P 500 marked its biggest daily percentage fall since February 8 - 3.3 percent - and Nasdaq registered its biggest fall since June 24, 2016 - 4.1 percent - as rising U.S. Treasury yields sent investors fleeing from risky assets. And there is still an overhang from the USA trade dispute with China, which accounts for sizeable portions of some tech companies' revenue.

When investors expect rates to rise, the prices of bonds paying lower interest rates falls.

Bangsund said the indiscriminate selling indicates that many nervous investors were unwinding positions despite strong earnings expectations. "The market's starting to say that the glass may be half empty". It was at just 3.05 percent early last week.

Tech stocks in the S&P 500 fell 2.5 percent Wednesday for the steepest loss among the 11 sectors that make up the index. The Nasdaq dropped more than 4% in the worst percentage decline since June 2016.

The S&P 500 posted its fifth straight decline, plummeting almost 3.3%.

Rising interest rates make bonds more attractive relative to riskier stocks.

Apple (AAPL), Boeing (BA), Caterpillar (CAT) and Nike (NKE) - Dow stocks that all have a significant presence in China - were among the bigger blue chip losers on Wednesday. Alphabet has dropped 15 percent since late July.

Insurance companies dropped as Hurricane Michael continued to gather strength and came ashore in Florida bringing winds of up to 155 miles an hour. Berkshire Hathaway dipped 4.7 per cent to US$213.10 and reinsurer Everest Re slid 5.1 per cent to US$217.73.

Luxury retailers tumbled after LVMH, the parent of Louis Vuitton, said its sales growth in China slowed.

The 10-year US Treasury yield rose to 3.23 per cent from 3.20 per cent late Tuesday after earlier touching 3.24 per cent. It was at just 3.05 per cent early last week and 2.82 per cent in late August.

USA stock indexes fell in early trading Wednesday as interest rates nudged higher yet.

For example, a yield rise in a month of one standard deviation or less, which would be 20 basis points now, is manageable for stocks, Goldman said in a note last week. Higher rates increase borrowing costs, pinching corporate profits. "Equity markets have enjoyed capital flows because bond yields have been so paltry".

"Amazon recently announced they were increasing wages, Facebook is spending a ton on security", she said. Only 17 stocks in the S&P 500 wound up with a gain.

SEARED: Sears Holdings nosedived after the Wall Street Journal reported that the struggling retailer hired an advisory firm to prepare a bankruptcy filing that could come within days. Within the index, 26 stocks fell, 20 gained and four were unchanged.

Gold stocks rose by more than two per cent on a higher price of gold.

Sears has closed hundreds of stores and sold several famous brands or put them on the block as it sees more customers abandon its stores.

COMMODITIES: Benchmark U.S. crude oil fell 60 cents to $74.36 per barrel. The Nasdaq composite fell 73 points, or 1 percent, to 7,663. The Fed has predicted that unemployment will remain below 4 percent through 2020 and inflation is expected to track around 2 percent, conditions that Federal Reserve chief Jerome H. Powell called "remarkably positive". Amazon skidded 6.2 percent to $1,755.25.

USA gold futures settled up $1.9, or 0.16 percent, at $1,193.4.

CVS dipped 0.1% to $79.40 and Aetna added 0.5% to $204.64. Copper fell 0.9 percent to $2.78 a pound.

But historically, a monthly move of one to two deviations, or 20 to 40 basis points now, would result in flat S&P 500 returns.

Stocks from emerging markets were also hard hit.

"The indications we look at lead us to conclude this is likely to be yet another brief pullback in the context of a 9.5-year bull market with another 3-5 years left to go", Reynolds said in a note. Brazil's Bovespa lost 2.5 per cent and the Merval in Argentina sank 2.2 per cent.