kalerkantho


US stock plunge sparks global sell-off

Kalerkantho Online   

6 February, 2018 10:31 AM



US stock plunge sparks global sell-off

Photo: Getty Images

A- A A+

US stocks suffered their worst falls in more than six years on Monday in a sell-off sparked by concerns of higher interest rates.

The Dow Jones Industrial Average index tumbled 1,175 points, or 4.6% to close down at 24,345.75.

The White House moved to reassure investors saying it was focused on "long-term economic fundamentals, which remain exceptionally strong".

Signs of improvement in the economy had driven US markets to record highs, reports BBC.

Ever since he was elected in November 2016 President Donald Trump has tweeted a number of times about the increase in US stock markets, using the gains since he took office to illustrate market improvement.

"Economic news from the US has been stronger than anticipated," said David Kuo, chief executive of financial services advisory Motley Fool.

"So, perversely, the market correction has been caused by positive economic news".

Monday's decline is the largest decline in percentage terms for the Dow since August 2011, when markets dropped in the aftermath of "Black Monday" - the day Standard & Poor's downgraded its credit rating of the US.


Comments

TALK OF THE TOWN