Published: Sun, February 11, 2018
Markets | By Erika Turner

Dow rallies back, ends trading day sharply higher

Dow rallies back, ends trading day sharply higher

Within seconds, the Dow Jones industrial average was down more than 500 points.

U.S. stocks suffered another big selloff on Thursday, with the Dow Jones Industrial Average tumbling more than 4 percent, as investors fretted about rising bond yields and the market's recent volatility. It landed in a correction, a 10% decline from previous highs.

Traders are still braced for more volatility as they try to figure out if the swings over the past few days are the start of a deeper correction or just a temporary blip in the United States market's nine-year bull run.

"The stock market is up significantly. since President Trump was elected". The Nasdaq composite gained 0.7 percent.

"It was volatile all day, crossing the line between gains and losses more than 20 times", NPR's John Ydstie reported.

The bank left interest rates at 0.5% at its meeting, but said a strengthening economy meant interest rates were likely to rise sooner than the markets were expecting.

The gyrations come a day after panic appeared to course through Wall Street, with the Dow plunging a record 1,175 points on Monday.

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Investors are weighing whether the sharp swings are the start of a deeper correction or just a temporary bump in the nine-year bull market, spurred by concerns over rising interest rates and bond yields. The German Dax dropped 2.3 percent, while the French CAC 40 fell 2.4 percent. "They love it, but they're also respectful and terrified". In Asia, the Japanese Nikkei 225 plunged 4.7 percent, while the Shanghai composite pulled back 3.4 percent.

"If you didn't know the stock market went down by that much yesterday and Friday and you just walked into a store, you wouldn't know unless you heard someone talking about it so it doesn't really affect our daily lives", professor Alice Kassens said.

After the stock market crash of 1987 and another big decline in 1989, the New York Stock Exchange put automatic limits on trading. Hong Kong's Hang Seng index lost 4.9 percent to 30,651.31 and Australia's benchmark S&P ASX 200 had skidded 3.3 percent to 5,828.40. The Dow and S&P are now back in positive territory for 2018.

The pivotal gauge of S&P 500 volatility, the VIX, opened at a relatively elevated 31 points and was at 29.66. Bond prices move inversely to yields.

From Election Day to the record high on January 26, the Dow climbed more than 8,000 points - a remarkable 45%.

The Dow seems to be doing better today. These included Dow members Apple, Home Depot and Chevron, all of which recovered more than four percent.

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