Wall Street resumes selloff; S&P flirts with correction

Posted October 30, 2018

Stocks are opening modestly higher on Wall Street a day after a sharp sell-off erased the market's gains for the year.

The Nasdaq composite, with a hefty roster of tech stocks, bore the brunt of the sell-off, leaving it more than 10 percent below its August peak, what Wall Street calls a "correction".

The S&P 500 index fell 84 points, or 3.1 per cent, to 2,656.

The Dow Jones fell 1.2%, while the Nasdaq slumped more than 2%.

The weak results from Amazon and Google parent Alphabet were the latest setback for the high-growth quartet of stocks known as FANG, which also includes Facebook Inc (FB.O) and Netflix Inc (NFLX.O).

Meanwhile, the S&P 500 opened lower as it fell 1.4 percent, while the Nasdaq 100 tumbled by 2.6 percent.

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The Nasdaq closed down 12.4 percent from its August 29 record closing high, falling 4.4 percent for the day in its biggest one-day percentage decline since August 18, 2011. That's higher than what many economists had been projecting, but lower than the 4.2 percent rate of growth in the second quarter.

The Dow and S&P 500 both moved back in positive territory for the year.

The Dow is down 135.80 points, or 0.5 per cent.

Charts for the entire region were awash with the red that indicates losses, but the declines were mostly in the 2 percent to 3 percent range.

Amazon shares fell more than 7 percent in trading on Friday, one day after the e-commerce giant posted slower-than-expected revenue growth and set a holiday season sales forecast below Wall Street's expectations. Although this reading came in above the analysts' estimate of 3.3%, the details of the publication showed that tariffs started to weigh on the economic growth with exports falling and rising imports rising strongly.

The benchmark index is now 9.3 percent below the peak it reached in September.

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Boeing jumped 2.2 per cent in early trading Wednesday after beating analysts' earnings forecasts and raising its estimates for the year, citing faster orders for aircraft.

Gold fell 0.5 percent to $1,231.10 an ounce.

A bruising session on Wall Street on Wednesday saw technology stocks take a particular hammering - building on losses of recent weeks.

Intel Corp stood out amid the carnage in technology stocks, jumping 3.1 percent after its better-than-expected quarterly results, though interim Chief Executive Officer Bob Swan said trade tensions with China could be a "headwind" next year. Brent crude, the benchmark for worldwide oil prices, rose 0.9 percent to $76.89 a barrel in London. Hong Kong's Hang Seng sank 1.1 percent.

Specialist Gregg Maloney, left, and trader Timothy Nick work on the floor of the New York Stock Exchange, Wednesday, Oct. 24, 2018.

The dollar weakened to 112.08 yen from 112.23 yen. Heating oil added 1.2 percent to $2.28 a gallon and natural gas gained 1.1 percent to $3.20 per 1,000 cubic feet. The euro rose to $1.1408 from $1.1393. Copper dipped 0.1 percent to $2.75 a pound.

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