Wall Street Leads Markets Lower
Wall Street sell off causes Asia markets to tumble
End Of Month Falls
Global stocks have plummeted after a rush of sell-offs on Wall Street. The sell-off has resulted in two of the main Asia indexes losing their gains for the year, pushing the Dow Jones Industrial Average down by more than 600 points.
Which Markets Fared Worst?
The slump was worse in Asia, where stocks in Tokyo plunged by more than 3% on the opening of markets, with both the Shanghai and Hong Kong indexes slipping by up to 2%.
However, Europe was also affected, as London’s FTSE 100 was also down by 0.9%, and Australian shares have dropped for fives consecutive sessions.
Firms in the technology sector, which drove most gains over the past year, have been particularly affected by the biggest losses.
The tech-based Nasdaq composite has had its worst trading day since 2011, dropping more than 4.4%, while big name brands such as Amazon, Facebook, Samsung and Netflix have fallen by up to 9%. Wall Street has called Nasdaq’s sell-off a correction.
What Caused The Sell-off?
The tech sector has usually been seen as reliable and strong against weak financial growth, but investor concerns over global trade and tariffs (particularly China-US and Italy-EU) and profit have caused anxiety.
There are also suggestions that events such as the recent discovery of pipe bombs mailed to several high-profile political figures in the US, including ex-President Barack Obama and Hillary Clinton, may have caused unease.
There have been global concerns regarding economic sanctions, the recent killing of a journalist in Saudi Arabia, and the US mid-term elections.
Many investors feel that chaos, and possibly another economic crash, may be just around the corner. The CBOE Volatility Index, a highly regarded measure of fear in the market, has shot up more than 100% in the past month.
As a result, the Dow Jones is expected to have its worst month since the global financial crash in 2010, following the sixth day in a row of declines. The chief investment officer of Wells Fargo has claimed that “investors are on pins and needles” and that “the sentiment and the outlook seems to be turning more negative”.