Wall Street tumbles 2% by the end

2018-10-11 23:29:35 GMT (Economies.com)
Wall Street tumbles 2% by the end

US stock indices closed the fourth session of the week sharply lower as a selloff wave storms the markets for the second session on concerns of policy tightening and US-China trade dispute. 


Hurricane Michael has been also barreling towards Florida, expected to have some serious damage and leading to the halting of oil production in the Gulf of Mexico. 


US Inflation, Labor Data 


Other US data showed consumer prices rose 0.1%, slowing down from 0.2%, while core prices rose 0.1%, also missing estimates of 0.2%. 


On a yearly basis, consumer prices rose 2.3%, slowing down from 2.7%, while core prices rose 2.2%, below expectations of 2.3%. 


Unemployment claims rose 7 thousand in the week ending October 6 to 214 thousand, while continuing claims rose 4K in the week ending September 29 to 1.660 million.


US President Donald Trump renewed his criticism of the Federal Reserve's policy tightening, accusing them and the treasury secretary of making the most problems for America, even over the trade dispute with China. 


In a Pennsylvania rally, Trump said the Federal Reserve has gone "crazy" with its latest rate hikes, while noting that stocks are undergoing a normal correction after a succession of record highs. 


Otherwise, International Monetary Fund head Christine Lagarde expressed her support for China's moves to maintain the flexibility of its exchange rate, while noting the Fed's decisions shouldn't be considered "crazy". 


In another note, US Treasury Secretary Steven Mnuchin said he wasn't surprised by the sharp correction in the stock market, maintaining that the US economy's foundation are very strong despite what recent market volatility would've insinuated.  


On Sunday, the People's Bank of China cut reserve requirements for Chinese banks for the fourth time this year amid attempts to ease policies and bolster spending. 


The International Monetary Fund cut its forecasts for global growth for this year and the next for the first time in two years, with US and Chinese economies the most important downgrades alongside the euro zone due to rising trade protectionism. 


 Indices, Commodities 


Dow Jones fell 2.13%, or 545.91 points to 25,052.83, while S&P 500 shed 2.06%, or 57.31 points to 2,728.37. NASDAQ Composite tumbled 1.25%, or 92.99 points to 7,329.06. 


Gold futures due in December rose 2.82% to $1,227.00 an ounce, marking early August highs, while the dollar index fell 0.52% to 95.01 to September 28 lows


US crude futures due in November slumped 3.13% to $70.88 a barrel to September 21 lows, while Brent December futures swooned 3.49% to $80.19 a barrel to September 21 lows. 

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