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US stock markets extend sharp falls | |
(about 3 hours later) | |
US shares have plunged following a brief respite in a day of volatile trading that has rattled global markets. | |
The Dow Jones Industrial Average led the fallers, down 1.68% or 427.58 points to 25,093.38. | |
It was closely followed by the wider S&P 500 stock index and the technology-heavy Nasdaq. | |
The falls began on Friday when strong wage growth data raised the prospect of accelerated interest rate rises. | |
London's main share index, the FTSE 100, closed down 1.46% while earlier, the biggest markets in Asia fell between 1% and 2.5%. | |
The decline followed months of market increases, which had fuelled concerns that share prices were over valued. | The decline followed months of market increases, which had fuelled concerns that share prices were over valued. |
David Madden, market analyst at CMC Markets, said: "Equity traders were enjoying a bullish run recently, and the jolt from the major decline in the US last Friday has triggered a worldwide round of profit taking." | |
US shares suffer sharpest drop since 2016 | |
The Dow Jones rose more than 25% in 2017 - a year which was also unusual for its lack of sharp moves. | The Dow Jones rose more than 25% in 2017 - a year which was also unusual for its lack of sharp moves. |
"There is going to be more volatility this year, " Andrew Wilson chief executive of Goldman Sachs Asset Management, told the BBC. | "There is going to be more volatility this year, " Andrew Wilson chief executive of Goldman Sachs Asset Management, told the BBC. |
"We are in a cycle where central banks are reducing the amount of bonds they are buying and some central banks putting up interest rates," he said. | "We are in a cycle where central banks are reducing the amount of bonds they are buying and some central banks putting up interest rates," he said. |
On Friday there was a hefty 4% loss for shares in Apple, which had been one of the markets' star performers in recent years. | On Friday there was a hefty 4% loss for shares in Apple, which had been one of the markets' star performers in recent years. |
That selling came despite a solid trading update from the company. | That selling came despite a solid trading update from the company. |