On Wednesday, US stocks dropped on overseas markets extending the previous session’s declines.
The Dow Jones industrial Average dropped 0.1% or 33 points to 16,685 while the S&P 500 dropped 0.3% or 6 points to 1,930. The Nasdaq Composite Index dropped 0.35 or 13 points to 4,372.
Stocks have been pressured by worries about the slowing global economic growth.
Bloomberg Businessweek quoted Cincinnati-based fund manager of Huntington Asset Advisors Inc., Peter Sorrentino as having said, “Investors are cautious and that’s why you’re seeing the grind back and forth today. You’re seeing energy stocks getting hit hard again. It concerns investors that profit growth may not be as forecast in to next year.”
Growth forecasts were cut by the International Monetary Fund amid warnings of “frothy” equities yesterday, which sent the S&P 500 1.5% lower, taking its loss from the 3.8% record of September 18.
According to NASDAQ, the Dow has dropped 3.2% from September 19 and closed on Tuesday with its third move of around 200 points within the last five days of trading.
Canaccord Genuity senior managing director of equity trading, Dave Rovelli said, “It’s definitely a selloff like we haven’t had in a while.”
Mr. Rovelli added that traders are fixated on technical levels and pivot points for major benchmarks, which provide signals to whether some markets are lower or higher.
On Wednesday, focus was on the Russell 2000 Index of small company shares. Further fluctuations in the Russell 2000 might weigh on the broader market positions. The Russell index declined 0.6% extending its 3.1% weekly decline.
The Stoxx Europe 600 dropped 0.6%, the DAX of Germany dropped 0.7%, the lowest from December 2013.
The yield on the benchmark 10-year Treasury note edged lower from 2.352% to 2.342%. Gold futures dropped 0.1% to $1,210.70 per ounce. Crude oil futures dropped 1.8% to $87.23 per barrel.
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