The Standard & Poor’s 500 Index is now down 10 percent from its November peak.
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“In the meantime, it is not a market for broad indexes but rather for those with investment focus, specifically, with the ability to take gains in appreciated stocks and to put money to work in opportunities created by the current selloff”, he added. U.S. stocks tumbled due to heavy selling of energy and consumer stocks. The price of United States crude oil closed slightly higher, but remains near $US30 a barrel, a level that investors fear could force many oil and gas companies to go bankrupt. The Dow fell 306.60 points, or 1.9 percent, to 16,209.62, and the Nasdaq Composite Index sank 2.8 percent. The Nasdaq composite dropped 159 points, or 3.4 percent, to 4,526.
Stocks have swung intraday in recent sessions, as investors remain ultrasensitive to changes to the price of oil and updates on global growth.
Copper was among the industrial metals gaining on China’s trade data. Brent crude, an global benchmark, briefly fell through the psychologically important $30-a-barrel barrier Wednesday, before settling down 2.4 percent on the day, at $30.12. Investors were also weighing the latest company earnings and economic news from of China.
Crude oil prices declined for the seventh day in a row, the longest losing streak since July 2014.
In Europe, Germany’s DAX advanced 1 percent to 10,085 while France’s CAC 40 rose 1.4 percent to 4,441.
Stocks initially benefited from strength in the overseas markets, but buying interest waned shortly after the start of trading.
The Dow fell as much as 390 points Wednesday afternoon (January 13) before recovering a little, primarily driven by fears about the ongoing oil price plunge and China’s currency devaluation, experts say.
There were further sharp falls on Wall St yesterday evening after two days of relative calm over renewed concerns about oil prices and corporate profits.
Biotechnology stocks posted particularly steep losses, dragging the NYSE Arca Biotechnology Index down by 5.3 percent.
Consumer discretionary stocks in the S&P 500 slumped 3.4 per cent, among the worst performers for the day. (CSX) shares fell 6.8% Wednesday, after late Tuesday delivered earnings that beat forecasts, but reported weaker-than-anticipated revenue (http://www.marketwatch.com/story/csx-revenue-falls-13-as-coal-shipments-decline-2016-01-12-18485624). The report underscores the challenge facing policy makers heading into their meeting later this month: The labor market is strengthening without triggering signs of higher wages or inflation more broadly. The euro fell to $1.0877 from $1.0883.
Japan’s Nikkei 225 stock index jumped 2.7 percent to 17,682.33 and Hong Kong’s Hang Seng was up 2.5 percent to 20,204.74.
CURRENCIES: The dollar rose to 118.23 yen from 117.89 yen in the previous trading session.
Teen retailer Zumiez raised its guidance for the fiscal fourth quarter, and shares gained $3.07, or 20.4 percent, to $18.15. South Korea’s Kospi and Australia’s S&P/ASX 200 added 1.3 percent.
Gold rose 0.2% to $1,087.50 a troy ounce.
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BONDS AND CURRENCIES: The yield on the 10-year Treasury note held steady at 2.11 percent.
