Economy

Markets Right Now: Another steep drop pulls Dow down 500

Markets Right Now: Another steep drop pulls Dow down 500

The Dow Jones Industrials fell from their highs of the day, but still took on 82.66 points to end the day at 23,675.64, amid gains in Boeing and Goldman Sachs, which posted its first positive day in 10 on Tuesday. The S&P 500 closed at 2,546.16 for a gain of 0.22 points or 0.01%.

MARKETS OVERSEAS: In Europe, Germany's DAX rose 0.3 percent, while France's CAC 40 dripped 0.3 percent and the FTSE 100 in London dropped 0.6 percent.

USA stock markets again swept downward Monday as the volatility of recent weeks resumed ahead of the holidays.

Technology companies helped drive stocks higher Tuesday.

In addition, the German Ifo economic institute's business climate index fell for the fourth month in a row to its lowest level in more than two years and Japan's government revised down its economic growth forecasts.

The S&P 500 is down 53.79 points, or 2.1 per cent.

Homebuilder sentiment drops in December to the lowest point in more than three years as potential buyers delayed purchasing new homes, giving rise to concerns over affordability.

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Software, retail, telecom and computer hardware stocks also saw considerable weakness amid another broad based sell-off on Wall Street. The Russell 2000, which tracks smaller companies' performance, entered a bear market, down 20 percent from its 52-week high, and the Cboe Volatility Index hit its highest level in a week.

"We're facing the biggest December fall in USA stocks since 1931 and this is striking and worrying at the same time", said Chris Bailey, European strategist at worldwide financial services firm Raymond James. Exxon Mobil fell 2.7%, Chevron lost 2.4% and ConocoPhillips dropped 1.9% as the USA and Russian Federation continue to pump at record levels ahead of planned output cuts by the Organization of the Petroleum Exporting Countries and its allies.

In addition to the looming government shutdown threat, investors prepared for the outcome of the two-day meeting of the Federal Open Market Committee, which began on Tuesday.

Prices for the benchmark for the 10-year U.S. Treasury grew, lowering yields to 2.83% from Monday's 2.86%. She canceled a vote on the deal last week because it was clear legislators were going to reject it.

"Investors are zeroing in on this idea of slower growth for 2019", said Michael Arone, chief investment strategist at State Street Global Advisors.

EARNINGS BOOST: Oracle jumped 3.4 percent to $47.30 after reporting stronger profit for the latest quarter than analysts expected. The dollar index, tracking it against six major peers, fell 0.03 percent, with the euro up 0.14 percent to $1.1362.