By Vildana Hajric and Sarah Ponczek, Bloomberg News
The sell-off in U.S. stocks accelerated, wiping out gains for the year in both the S&P 500 Index and the Dow Jones Industrial Average, as mixed corporate earnings and weak housing data fueled anxiety that rising prices will crimp economic growth. Treasuries rallied for a second day on demand for haven assets lapsed into a correction.
“This is really off the walls,” said Donald Selkin, chief market strategist at Newbridge Securities. “Nothing fundamentally changed during the day. I think it’s a technical breakdown. Look at the Nasdaq — down 300 points.”
Amid the flood of earnings, economic data continued to underwhelm, particularly on the rate-sensitive housing front. New home sales sank again, sending battered homebuilders lower. Fragile market sentiment is also
The S&P extended its October rout to 8.8 percent, making it the worst month since February 2009. Disappointing earnings from AT&T and Texas Instruments drove declines in the communications and semiconductor groups, offsetting a promising outlook from Boeing. The Dow tumbled 600 points, and the Nasdaq Composite Index.
“This is really off the walls,” said Donald Selkin, chief market strategist at Newbridge Securities. “Nothing fundamentally changed during the day. I think it’s a technical breakdown. Look at the Nasdaq — down 300 points.”
Amid the flood of earnings, economic data continued to underwhelm, particularly on the rate-sensitive housing front. New home sales sank again, sending battered homebuilders lower. Fragile market sentiment is also tumbling.
The Nasdaq plunged 4.4 percent for its biggest single-day slide since August 2011. The tech-heavy measure is now down 12 percent from an August record, meeting the accepted definition of a correction. The measure’s biggest components — Apple, Amazon.com, Microsoft and Alphabet, which account for almost a quarter of the index by weighting — have dragged it lower as investors grow increasingly concerned that outsize profit gains won’t be sustainable.