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Dow slides as US stock market suffers worst week in two years - business live Dow slides as US stock market suffers worst week in two years - as it happened
(35 minutes later)
New York traders will be catching their breath and counting their losses after this week’s declines.
So, here’s our updated news story on the markets today:
Wall Street ended its worst week in two years on Friday with another sharp fall as markets in Europe also continued to tumble from the record-high levels reached less than a month ago.
Investors headed for the exits amid growing fears over a bond market rout, triggered by early signs of inflation in the US as economic growth accelerates and wages appear to finally be rising after years of stagnation. US government bond yields, which rise as prices fall, hit the highest level since January 2014.
The Dow Jones Industrial Average fell 665 points to end the day down more than 2.5% and falling below 26,000, the record level it hit on 17 January.
The sell-off came after the US labor department released a better than expected monthly jobs report, sparking fears of a sharper rise in interest rates. It was the first time since June 2016 that the Dow had fallen more than 500 points.
Here’s the full story:
That’s probably all from us for this week. Thanks for reading and commenting. Goodnight!
Bitcoin, incidentally, is still off its earlier lows. It’s down 5% today at $8,556.
The Dow finished 665.75 points lower. So it you round it down.....
Down 666? Uh oh. https://t.co/4uxMV15Q3Z
Each of the 30 companies on the Dow fell today.
The worst performers were Chevron (-5.5%), Exxon (-5.1%) and Goldman Sachs (-4.5%).
Tech stocks also had a bad day, with Apple down 4.3%.
Over on the Nasdaq (which lost 2%), Alphabet slid by 5% after Google’s parent company missed expectations with its financial results last night.
What caused the selloff?
There are several factors, but the most significant may be today’s jobs report - showing wages rose by 2.9% over the last year. That increase in earnings could push up inflation, forcing US interest rates higher.
In a nutshell: Wall Street is freaking out about that wage data
It was a poor week for the S&P 500 (a broader stock market index than the Dow)It was a poor week for the S&P 500 (a broader stock market index than the Dow)
*S&P 500 SINKS 2.2% TO CAP WORST WEEK SINCE JANUARY 2016*S&P 500 SINKS 2.2% TO CAP WORST WEEK SINCE JANUARY 2016
Traders on Wall Street will be nursing bruises; the Dow has lost 1,095 point this week.Traders on Wall Street will be nursing bruises; the Dow has lost 1,095 point this week.
Dow Jones ends the week 4.1% lower, worst week since Jan2016. pic.twitter.com/Kis19E763qDow Jones ends the week 4.1% lower, worst week since Jan2016. pic.twitter.com/Kis19E763q
This looks like the third-biggest one-day points decline on the Dow ever!This looks like the third-biggest one-day points decline on the Dow ever!
It also looks like the biggest points decline since the aftermath of Lehman Brothers collapse.It also looks like the biggest points decline since the aftermath of Lehman Brothers collapse.
However, it’s not that historic. In percentage terms, today’s falls are much less dramatic - but still a concern...However, it’s not that historic. In percentage terms, today’s falls are much less dramatic - but still a concern...
Huge POINT decline today for the Dow Industrials—670 points. 3rd biggest decline on record. See below. However, the decline in terms of PERCENT is much much smaller—2.5% pic.twitter.com/ZIbrUub6q2Huge POINT decline today for the Dow Industrials—670 points. 3rd biggest decline on record. See below. However, the decline in terms of PERCENT is much much smaller—2.5% pic.twitter.com/ZIbrUub6q2
Our data team informs us this will either be the 6th largest point decline for the Dow in history or its 599th largest one-day percentage decline. #650pointsaintwhatitusedtobe @BenEisenOur data team informs us this will either be the 6th largest point decline for the Dow in history or its 599th largest one-day percentage decline. #650pointsaintwhatitusedtobe @BenEisen
NEWSFLASH: The US stock market has recorded its worst week in two years, after a wave of selling hit Wall Street.NEWSFLASH: The US stock market has recorded its worst week in two years, after a wave of selling hit Wall Street.
The Dow Jones Industrial Average has tumbled by almost 670 points, or 2.5%.The Dow Jones Industrial Average has tumbled by almost 670 points, or 2.5%.
That’s the biggest percentage fall since June 2016, and means the Dow has shed around 1,000 point this week. That’s the biggest percentage fall since June 2016, the day after the Brexit vote, and means the Dow has shed over 1,000 points this week.
One important point - a 600-point plunge isn’t what it used to be, due to the strong market rally over the last 15 month.One important point - a 600-point plunge isn’t what it used to be, due to the strong market rally over the last 15 month.
Dow down 640. Only two 700+ point drops ever. Both during '08. But those slides knocked off about 7%-8% from Dow. Today's fall? Just 2.5%.Dow down 640. Only two 700+ point drops ever. Both during '08. But those slides knocked off about 7%-8% from Dow. Today's fall? Just 2.5%.
Wall Street is staggering towards the finishing line.... with five minutes to go, the Dow is down 675 points or 2,5%.Wall Street is staggering towards the finishing line.... with five minutes to go, the Dow is down 675 points or 2,5%.
Equities 2018 YTD: pic.twitter.com/rrRv0lV05qEquities 2018 YTD: pic.twitter.com/rrRv0lV05q
Inflation fears, worries about the bond market, and rising political tensions are all hitting the markets today, according to CNN’s latest market report.
Ken Odeluga, market analyst with City Index in London says:
“We’ve got a smorgasbord of negativity...It’s been pretty nervous all week.”
Earlier today, president Trump approved the release of a memo alleging that the FBI had been biased against Trump over their investigations into possible Russian interference in the US elections.
That move is weighing on investors, according to Ian Winer, head of equities at Wedbush Securities. He warns:
There looks like a breakdown of the institutions in our country.
“No matter what side you’re on, that’s not good.”
Dow plunges 600 points -- worst week in 2 yearshttps://t.co/MXhTZ8SZLW
The Dow is now at a three-week low:
Make that a 624-point fall...!
DOW PLUNGES 600 POINTS, MORE THAN 2% https://t.co/Y9bYLMFUYK
Heading into the last hour of trading, the Dow is now down 576 points, or 2.2%.
Half the Dow loss from 6 stocks: Goldman, Apple, Chevron, Boeing, Exxon and Caterpillar
This could be the US stock market’s worst day since the aftermath of the Brexit vote....
Last 500 point drop for the Dow was on June 24, 2016 with Brexit — when Dow lost 610.32 points (-3.39%)@CNBC
The selloff is gathering speed!
The Dow Jones industrial average is now down by 500 points, or almost 2%.
Oil giant Exxon is still the biggest faller, down 5.5%, followed by Chevron (-4.1%) and Apple (-3.4%).
Investors seem to be increasingly spooked by the prospect of US interest rate rises, following today’s decent US jobs report - which showed a pick-up in hiring and wages.
Kristina Hooper, chief global market strategist at Invesco, explains:
A big wage growth number is the biggest risk to the stock market rally, because it means the Fed may get more aggressive in raising interest rates.
Here are a few photos from Wall Street, as traders try to keep pace with today’s selloff:
Here’s our colleague Richard Partington on the stock market losses today:
Wall Street was heading for its worst week in two years on Friday as markets in Europe also continued to tumble from record-high levels reached less than a month ago.
Investors headed for the exits amid growing fears over a bond market rout, triggered by early signs of inflation in the US as economic growth accelerates. US government bond yields, which rise as prices fall, hit the highest level since January 2014.
The Dow Jones Industrial Average fell almost 400 points in early trading in New York, hitting a low of 25,787. Amid a widespread sell-off, the biggest fallers were Apple, Visa and oil firms Exxon and Chevron.
In Europe, the FTSE 100 recorded its worst week since April last year when Theresa May called the snap election, dropping by 47 points to 7,443, while Germany’s Dax fell 1.7%.
The worst week for stocks under Donald Trump comes after one of the best years in history for shares in 2017 and just a week after the Dow hit a record high of 26,617.
More here:
With two and a half hours trading to go, Wall Street is solidly in the red.
The Dow is down 1.5%, or almost 400 points, at 25,789 points. The wider S&P 500 is off 1.1%, while the Nasdaq has lost almost 1%.
Given the losses earlier this week, Marketwatch agrees that we’re on track for the worst weekly losses in two years.
The markets in Mexico, Brazil and Canada are also having a bad day....