The Dow tumbles more than 400 points

Irving Hamilton
October 11, 2018

Many stock-market observers pin the start of the current bull market, the longest since World War II, at March 9, 2009. The Russell 2000 index of smaller-company stocks shed 37 points, or 2.3 percent, to 1,584.

Sears Holdings plunged 32 percent after the Wall Street Journal said the debt-laden retailer was preparing for a possible bankruptcy.

Technology shares tumbled on fears of slowing demand, while bond yields ended lower after seeing multi-year highs earlier this week.

This time around, strong economic data anxious bond investors, who sent the benchmark yield on Tuesday to 3.261 per cent, the highest since early May 2011. The two-year yield rose to 2.89 percent from 2.87 percent, and the 30-year yield climbed to 3.39 percent from 3.37 percent.

Treasury yields rose again, tempting more investors away from stocks. The most recent, starting in 2007, lasted about 2 1/2 years, though it took another four for the bull market to exceed highs reached in 2007. Concerns about consumer spending have also led to jitters about USA companies as they prepare to unveil results for the third quarter of the year over the coming weeks. Snap, the parent company of the messaging app Snapchat, fell 4.8pc and sank to a new all-time low.

Oil firms Hess Corp and Marathon Oil fell around 7 per cent as Chevron dropped 3 per cent ahead of the third-quarter earnings season.

MSCI's gauge of stocks across the globe fell percent, its biggest single-day fall since February.

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.

Tech-related stocks were the biggest decliners, the sector shedding 4.0 per cent following an overnight U.S. session in which tech was badly hit, but the heavyweight financial and materials sectors were also deep underwater.

Massive pipeline explosion in BC risks Washington natural gas shortage
Later in the night, the evacuation zone was reduced to one kilometre and residents were able to return home, CTV reports . Several homes were evacuated after a pipeline ruptured and caused a large fire near Prince George, B.C.

The biggest driver for the market over the past week has been interest rates, which began spurting higher following several encouraging reports on the economy. Brent crude, the worldwide standard, lost 2.2 percent to $83.09 a barrel in London.

Benchmark U.S. 10-year Treasury notes rose late in the day, pushing yields down to 3.1931 percent. 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". Silver dipped 0.5 percent to $14.33 an ounce.

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

The dollar index fell 0.17 percent, with the euro up 0.25 percent to $1.1518. The Nasdaq composite fell 152 points, or 2 percent, to 7,585.

Japan's Nikkei 225 added 0.2 per cent, South Korea's Kospi dropped 1.1 per cent and the Hang Seng in Hong Kong gained 0.1 per cent.

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.

The CAC 40 in France dropped 1.5 percent, Germany's DAX lost 1.2 percent and the FTSE 100 in London slipped 0.4 percent.

Stocks from emerging markets were also hard hit. Brazil's Bovespa lost 2.5 per cent and the Merval in Argentina sank 2.2 per cent.

CURRENCIES: The dollar held steady at 113.05 Japanese yen. The British pound rose to $1.3197 from $1.3146.

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