Media Stocks Battered as Dow Sees Worst Showing in 20 Months

Enlarge this image

The Dow closed down 666 points, or 2.5%, its biggest percentage decline since the Brexit turmoil in June 2016 and steepest point decline since the 2008 financial crisis.

The S&P 500 and the Dow are both on track for their biggest one-week declines in more than two years.

Investors are afraid that the recent rise in USA wages means inflation is on the way. The VIX Volatility Index was higher at 17.24 for a gain of 3.77 points or 27.99%.

While interest rates are still low by historical standards, meaning borrowing is still relatively cheap for businesses and people, they have been rising more swiftly, and that is what has had markets on edge.

Apple fell 4.3 per cent after reporting a record $20 billion profit in the fourth quarter on higher revenues.

Each of the 11 major sectors in the S&P 500 ended down on Friday.

The yield on the 10-year Treasury note, a benchmark for many kinds of loans, including mortgages, climbed to 2.85 percent Friday, the highest level in roughly four years.

United States stock markets ended the week last night with the biggest single-day loss of the Trump era, as investors adjusted their interest rate expectations following labour market data which showed signs of an increase in inflation.

Bond prices on Friday declined again, pushing yields higher.

Other market analysts think Friday's drop has little to do with Washington. The market, which is down about 4% from its recent peak, hasn't suffered a 10% drop, or "correction", since February 2016. Some investors saw a potential buying opportunity.

More news: 5 fun facts about Groundhog Day, Punxsutawney Phil

The Fed also expected USA inflation on a 12-month basis to "move up this year and to stabilize" around the central bank's 2 percent target over the medium term. "It comes down to the nuts and bolts of earnings, interest rates, liquidity and value".

The decline sent the Dow below the psychologically important level of 26,000, which it had just broken through for the first time two-and-a-half weeks ago.

Analysts said the Federal Reserve now looks increasingly likely to raise interest rates next month when its panel of rate-setters meets for the first time under new chairman Jerome Powell.

While rising pay is good for workers, it can also be a sign that inflation is coming.

The U.S. bond market's gauges of inflation expectations added to their earlier rise on Friday as domestic wages recorded their strongest annual increase in more than 8-1/2 years, suggesting inflation may be accelerating.

The S&P 500 is up 88.52 points, or 3.3 percent.

Japan's 10-year yield dipped one basis point to 0.086 percent.

President Trump, who repeatedly has touted the stock market's gains as evidence that his economic policy efforts are paying off, trumpeted the January jobs report on Twitter.

Interest rates that are set every day in the global bond markets are already leaping higher, in anticipation of central bank rate increases later this year.

Related News:

  • China Rejects US Revision of Nuclear Strategy

    China Rejects US Revision of Nuclear Strategy

    The U.S. government says it has been in compliance since August and expects Moscow to comply by the deadline, which is Monday. The 74-page report, the Pentagon's first since 2010, cast China as "a major challenge to USA interests in Asia".
    Mourinho slams Manchester United players after Spurs defeat

    Mourinho slams Manchester United players after Spurs defeat

    Manchester United have been in good form this season and they are looking to tighten their hold on the Champions League places. It's a backhanded compliment, but as the game went on, the boos diminished as much as the Chilean's role in the match.
    Designate Moe backs Notley in BC pipeline dispute

    Designate Moe backs Notley in BC pipeline dispute

    In 2016, Notley said her government wouldn't increase the amount of electricity it buys from B.C. until the pipeline was a go. The mayor added the environmental regulations should have been put in place a long time ago, by the B.C.
  • TDP leaders tell Naidu to reconsider alliance with BJP

    TDP leaders tell Naidu to reconsider alliance with BJP

    Naidu is said to be upset with the alliance partner over the poor allocation for the state in the Union Budget, reported ANI . Responding to the question of the TDP MPs threatening to resign, he said, "We never said that, it is all speculation".
    Donald Trump taking tougher stance on Russian Federation  nuclear threat

    Donald Trump taking tougher stance on Russian Federation nuclear threat

    Nikki Haley said the NPR will allow the U.S.to remain "flexible and well-prepared for the unique threats we face today". The US also plans to modernize its nuclear arsenal by developing new, low-power nuclear munitions.
    DJ Fired Over Taylor Swift Groping Has New On-Air Gig

    DJ Fired Over Taylor Swift Groping Has New On-Air Gig

    Swift then counter-sued Mueller for assault, a case that ruled in the pop singer's favour. They're telling people to go to this station's webpage and post negative comments.
  • LeBron James willing to meet with Warriors this summer

    LeBron James willing to meet with Warriors this summer

    They certainly need to fix their defensive unit, which now ranks near the bottom of the league in numerous categories. But if he believes passive-aggressive leaks would also help him achieve that goal, I wouldn't put it past him.
    Turkey's General Staff: Nearly 900 terrorists killed in Operation Olive Branch

    Turkey's General Staff: Nearly 900 terrorists killed in Operation Olive Branch

    According to the message, 74 terrorists have been eliminated today and Operation Olive Branch is being successfully carried out. A ninth suspect was killed during the operation to round up the group, they said .

    Dow Plunges 550 on Hovering Charges, Disappointing Earnings

    The S&P 500 dropped almost 60 points, or 2.1 percent, and the Nasdaq Composite slid almost 145 points, or 2 percent. The Stoxx Europe 600 Index decreased 1.4 percent, wiping out gains this year with its fifth consecutive decline.
  • Meghan Markle Wears Chic Pantsuit For First Evening Engagement With Prince Harry

    Meghan Markle Wears Chic Pantsuit For First Evening Engagement With Prince Harry

    The royal-to-be wore cropped, black cigarette pants paired with a tuxedo shirt by designer Alexander McQueen . Meghan Markle wore a pantsuit by Alexander McQueen while attending an event on Thursday evening.
    Bollywood actors are posing with pads to challenge taboos about menstruation

    Bollywood actors are posing with pads to challenge taboos about menstruation

    Aamir wrote, "Thank you @mrsfunnybones, Yes, that's a Pad in my hand & there's nothing to be ashamed about". Mumbai: As Akshay Kumar's " Padman " release gets closer, the buzz around the movie seems to get stronger.
    YouTube TV Now Available on Roku Devices

    YouTube TV Now Available on Roku Devices

    The YouTube Go Android app is rolling out to more than 130 countries , starting today, after first launching in India a year ago . It also notifies users how much memory is available on a phone so that there is no snag while saving a video for offline viewing.


Most liked

Midwest expert looking for more rate hikes under new Fed chair
Federal Reserve Chair Janet Yellen , the first woman to head the nation's central bank, is not taking any time off. The Fed has a twin mandate to promote full employment while keeping a lid on inflation .

Israel To Retroactively Legalize A Colonialist Outpost
Roberto Valent, an official with the United Nations humanitarian agency OCHA, said he was "deeply concerned" by the demolition. On Saturday night, IDF soldiers detained a Palestinian who is suspected of collaborating with the attacker.

Syrian activists say civilians hit by chlorine gas attack
The officials also say Syria may be making new kinds of weapons, either to improve their military capability or to escape worldwide accountability.

Hawaii Emergency Agency Worker Says Was Sure Attack Was Real
According to federal officials, he has refused to co-operate with investigators beyond submitting a written statement. His supervisors counselled him but kept him for a decade in a position that had to be renewed each year.

Middle School Shoot Was Not Intentional
A student and parent react while leaving campus at Salvadore Castro Middle School in Los Angeles , California on February 1, 2018. A hotline has also been set up for those that cannot get to the location in person, and can be reached by dialing 213-241-1000 .

Florida nurse holds live Q&A on Facebook after video goes viral
She uses a sarcastic tone and animated facial expressions at times to get her point across. Lockler's clip has been shared on Facebook more than 94,000 times as of Friday morning.

Mesa ammo dealer wants death threats to stop and his reputation cleared
A criminal complaint filed in federal court in Phoenix said Haig didn't have a license to manufacture armor-piercing ammunition. Haig then put the ammunition in the box later found in Paddock's room.

Victims' father lunges at Larry Nassar during sentencing hearing
WKAR's Katie Cook has more from the courtroom . " Give me one minute with that bastard ", Margraves said while being detained. Nearly immediately, this family's getting professional advice to see one of the top doctors in his field, Larry Nassar .

Countdown To Six Nations Opener Against France
The Murray-Sexton half-back axis is present, along with the tried and tested Healy-Best-Furlong front row. But this year, with the fixtures reversed, Ireland have three successive home games from Rounds Two-Four.

Flu Season Getting Even Worse, Especially For Children — CDC
Still, individuals who do not receive the vaccine have a five to 20 percent higher chance of contracting some form of the virus. In the past week, the number of hospitalizations has jumped and more children and adults have died from flu.

Tom Brady does not want radio announcer fired
Brady will "assess" whether or not he wants to continue with the show, according to Boston.com . Because there is no longer a debate to be had that we're watching the greatest of all time.

Breast Cancer Therapies Associated With Increased Risk for Cardiovascular Disease
Having a father or brother who's also been diagnosed with prostate cancer at some point in their life increases your risk twofold. Other treatments, such as radiation, can damage heart arteries and cause the development of coronary artery disease or blockages.

Contention Rickie Fowler honors Griffin Connell at Phoenix Open
Palmer missed the cut in last years Waste Management Phoenix Open , but he was runner-up in 2015 and finished fifth in 2013. Got lucky, I kind of hit a bad putt on two, but it hit the back of the cup and went in.

Super Bowl 52: 20 fun facts for Patriots vs. Eagles
Plus, they have all that experience in the big game, bringing 31 players back from last year's championship roster. Brady tries to eat well, drink a lot of water, get the proper amount of rest and maintain a mental balance.

The 7 best movies about Groundhog Day
On the other paw, these critters somehow didn't see their shadow, which means we're in for an early spring: Charles G. During prohibition, Phil threatened to impose 60 more weeks of winter if he wasn't allowed to have the hard stuff.