MARKET MELTDOWN: Stocks Tank Again After Flirting With Gains
*By Carlo Versano*
Stocks were back to significant losses by late Thursday morning after briefly going positive in early trading. Wednesday's sell-off spilled over into global markets ー first in Asia, where all the major indices were down at least 3 percent, then to Europe, where markets were lower by around a percent in afternoon trading.
The Dow Industrials were down nearly 300 points by 11 a.m. ET. The Nasdaq and S&P were off by about a percent, and the Russell 2000 briefly entered correction territory.
The spread of red ink -- the S&P was down for its sixth straight day -- suggested more turbulence ahead for Wall Street, where a growing list of concerns is sowing unrest for a market that has been on a historic run on the back of strong earnings.
Wednesday's rout, in which the Dow finished down more than 800 points and the tech-heavy Nasdaq lost four percent, started with worry over creeping inflation and tightening Fed policy and quickly turned into an all-out sell-off, with high-flying tech stocks taking the most serious beating.
Amazon ($AMZN) was the biggest loser in the sector, losing more than $56 billion in market cap on Wednesday alone. The much-watched FAANG stocks, which also include Facebook ($FB), Apple ($AAPL), Netflix ($NFLX), and Google parent Alphabet ($GOOGL), shed a combined $175 billion in value ー about the entire market cap of Citigroup ($C).
It was the worst day for stocks in eight months, and the fifth-straight down day for the S&P.
President Trump, who's been quick to tout recent record highs in the market as a result of his economic and foreign policy, took this opportunity to criticize the Fed, calling the central bank "loco" for increasing rates.
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Thursday's sell-off only adds to what's already been a rough month for U.S. stocks. The Dow is down more than 3 percent already in October, while the S&P 500 is down over 4 percent. The Nasdaq has fallen nearly 8 percent.
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