U.S. stocks enter correction territory after plummeting second time in a week

Earlier in the day it had dropped by 500.

Aside Dow, other major stock indexes also tumbled.

The Dow Jones Industrial Average fell by more than 1,000 points for the second time this week, plunging 4.15% to 23,860. Investors remain fearful that signs of rising inflation and higher interest rates could bring an end to the bull market that has sent stocks to record high after record high in recent years.

On Wall Street, many companies that rose the most over the past year have borne the brunt of the selling.

Thursday's declines mean the Dow and S&P 500 have now fallen by more than 10% from the record highs set in January, a threshold analysts call a correction.

Among the biggest fallers Tuesday was Tokyo's Nikkei 225 stock average, which ended 4.7 percent lower at 21,610.24, having earlier been down a massive 7 percent.

With hope for a market rebound, traders began to sell off, especially after Wall Street opened with a drop of 547 points or 2.25 percent, but soon clawed back to be up 1.4 percent within hours. And the NASDAQ closed 275 points lower, at 6,777.

It follows the Dow's almost 1,200 point slide Monday, 500 point rebound Tuesday, and mild 19 point drop Wednesday. At the close, the company's shares rose 2.27 percent to close at 11.25 dollars apiece. The S&P 500, for example, has fallen 7.8 per cent since it set its latest record high on January 26.

Even the most bullish of market strategists will say a correction is ultimately healthy for a market because it removes some of the froth and speculation. Major indexes in Asia and Europe Tuesday took steep losses and United States markets started sharply lower, only to repeatedly change direction.

The biggest losses went to high-dividend companies including utility and real estate companies, as bond yields increased after a sharp drop on Monday.

Coast Guard suspends search for possible mariner in distress in Buzzards Bay
A Good Samaritan fishing boat crew aiding in the search located possible debris, a statement from the Coast Guard said. Coast Guard Cutter Hammerhead and a 47-foot Motor Life Boat crew from Station Menemsha are searching in Buzzards Bay .

Nagaland Assembly elections: 253 candidates file nominations on the last day
The CEO said that documents of 29 candidates were found to be invalid, while one of them have been adjourned till 10 February. The BJP has fielded candidates on 20 seats while Congress is contesting on 19 seats.

Teacher detained for suspected sexual abuse of Class 2 student
The development triggered angry protests by parents, who gathered outside the school, demanding suspension and punishment for the teacher.

US stocks tumbled again Thursday as investors continued to fret about the possibility of rising inflation and higher interest rates.

About 10.5 billion shares changed hands in USA exchanges, well above the 8.2 billion daily average over the last 20 sessions.

Despite the turbulence, Tuesday's trading looked similar to the patterns that have shaped the market for the past year: investors bought companies that do well when economic growth is strongest. "Stocks won't bottom until long term Treasuries rally hard".

"However once this kind of stampede starts it's hard to stop". This is the lowest level for this average since March 10, 1973 when it was 222,000. South Korea's Kospi had declined 1.5 percent. The more domestically focused FTSE 250 has gained 1.3 per cent, while the broader FTSE All Share index is up 0.8 per cent.

Volatility returned to markets on Thursday as USA indices finished the day sharply lower, plunging them into correction territory.

Stephen Schwarzman, the chairman and CEO of financial firm Blackstone, warned recently of a potential "reckoning" in markets.

"This has been the most overbought situation since the financial crisis 10 years back", he said. Such a rapid rise is unusual, and market analysts long warned that a pullback was overdue.

There's a psychological aspect to crashes, as people join the rush to get out of the market, fearing that things are only going to get worse.

Several Dow members lost more than 5 per cent, including American Express and Home Depot.

Related Articles

  • Newborn found abandoned with a note from mother in Tucson Airport

    Newborn found abandoned with a note from mother in Tucson Airport

    Airport officials are trying to identify the mother, "but we've exhausted our resources", Butler said in a statement. She can't and unfit to deal with me. "Please get me to the authorities so they can find a good home".
    MDOT ready for storm as city declares snow emergency

    MDOT ready for storm as city declares snow emergency

    Ahead of a new storm blasting through the Upper Midwest, 12 states from Montana to OH are heeding winter-weather alerts . All vehicles parked along the designated snow emergency routes in the municipalities will be either ticketed or towed.
    Cavs trade Dwyane Wade to Heat, acquire two guards from Jazz

    Cavs trade Dwyane Wade to Heat, acquire two guards from Jazz

    Watching from the West Coast, the defending champions took notice. "It's probably obviously something that they felt was needed". Finally, the team acquired Rodney Hood and George Hill in a three-way deal with the Uah Jazz and Sacramento Kings , ESPN said.
  • Emmy-winning 'House of Cards' actor Reg Cathey dies

    Emmy-winning 'House of Cards' actor Reg Cathey dies

    At this time, a cause of death for the actor has not been made public, but TMZ reported the actor had been battling lung cancer . Reg won his first Emmy Award for his portrayal of Freddy, the owner of Frank Underwood's favorite BBQ restaurant .
    Here Are Highlights From The Winter Olympics Opening Ceremony

    Here Are Highlights From The Winter Olympics Opening Ceremony

    The practise has decreased steadily as the country has hosted more worldwide events and younger South Koreans see it as taboo. According to Pence's office, there was "no interaction" between the US vice president and the North Korean officials.
    Former Roar midfielder Liam Miller passes away

    Former Roar midfielder Liam Miller passes away

    Later, he collected 21 caps for the senior team between 2004 and 2009, scoring one goal in a win over Sweden in 2006. Danny Higginbotham, former United, Southampton and Stoke defender, said: "RIP Liam Miller".
  • Jammu on red alert after JeM terrorists attack army camp injuring 2

    Jammu on red alert after JeM terrorists attack army camp injuring 2

    Police in Indian Kashmir say a group of militants have opened fire inside an army camp in the disputed region. The district administration of Jammu has asked schools within 500 meters of the camp to remain closed.
    Disney is planning a live-action 'Kim Possible' remake

    Disney is planning a live-action 'Kim Possible' remake

    The show not only offered a very catchy ringtone but a female action hero who could kick ass and live a normal teenage life. Because I can't really imagine a Kim Possible story beginning with anything other than "Call Me, Beep Me".
    YouTube: Stephen Crowns Elon Musk As The King Nerd

    YouTube: Stephen Crowns Elon Musk As The King Nerd

    Estimated to have been built at a cost of $500m-$1bn, this expenditure is tiny when compared to NASA's Space Launch System (SLS). Have customer deposits become a major revenue stream? Tesla is down 5.95% Thursday, taking the stock down 17% in the past week.
  • Prince William: If Kate had twins it would test my mental health

    Prince William: If Kate had twins it would test my mental health

    Prince William is speaking out about the issues involved with growing up in the age of social media . Prince William , Professor Green and Daniel Howell.
    Russian Scientists Arrested For Cryptomining With Supercomputer

    Russian Scientists Arrested For Cryptomining With Supercomputer

    The Sarov facility, which is usually called Federal Nuclear Center, is Russia's counterpart to the Los Alamos National Laboratory. The researchers have been handed over to the FSB and a criminal case has been launched against them, according to officials.
    Why Giants had been capable of dodge a Josh McDaniels' catastrophe

    Why Giants had been capable of dodge a Josh McDaniels' catastrophe

    Josh McDaniels surprised many observers Tuesday when he chose not to accept an offer to become the Indianapolis Colts coach . That's where Josh McDaniels' bombshell of a decision to back out of the Colts' head coaching job could affect the Vikings.