Wall Street Set For Worst Week Since 2011

FTSE 100 stock market board and US trader

The Dow Jones industrial average also rose 1.4%. Earlier in the day it had dropped by 500.

Following relatively little change on Wednesday, the index once again experienced a drop Thursday, closing at 23,860, a decrease of 1,032 or about 4 percent.

The losses, which began last Friday, put the benchmark Standard & Poor's 500 index nearly 8 percent below the record high it set two weeks ago.

In small-caps, the Russell 2000 Index closed at 1,463.79 for a loss of -44.17 points or -2.93%.

The 10-year Treasury yield, which touched a four-year high of 2.88% on Thursday, is trading around 2.80% on Friday.

The big point swings that pummeled stocks reflected a return of volatility after an unprecedented period of calm.

The Dow Jones industrials are down 800 points, extending the market's losses.

The S&P 500 hit its 2018 peak January 26, reaching 2,872.87. At midday, the market was on pace for its worst weekly decline since October 2008, at the height of the financial crisis. The Dow is still trading significantly above 20,000 point; an essentially meaningless milestone it passed through for the first time just over a year ago. The stock rose $3.27 to $30.18.

It is the second-worst fall in history, eclipsed only by Monday's 1,175-point plunge. When bond prices go lower, their yield increases. Numerous companies that rose the most over the past year have borne the brunt of the selling. That means a drop of 10 percent from a recent peak. He said the declines are part of a normal adjustment in stock prices to reflect growing inflation concerns after a long stretch in which the indexes set record high after record high.

Japan's Nikkei 225 average lost 2.8 percent to 21,240.05 in early trading Friday.

The S&P 500 shed 3.8% and the Nasdaq Composite slumped 3.9% despite strong earnings and economic data.

Rising U.S. debt issuance is expected to weigh on bond prices in coming months. The yield on the 10-year Treasury note was unchanged at 2.80 percent.

The closing numbers are displayed after the closing bell of the Dow Industrial Average at the New York Stock Exchange on Wall Street on February 8, 2018 in New York. The Nasdaq was down 10 points, or 0.2 percent, to 6,765.

"I don't think these types of moves, given how much the market has rallied, pose systemic risk". Selling in the bond market led Wall Street to worry that inflation will force the Federal Reserve to speed up its rate hike plans.

"There's some big-money players that have really leveraged to the low rates forever, and they have to unwind those trades", said Doug Cote, chief market strategist at Voya Investment Management. Hong Kong's Hang Seng was down 3.8 per cent for the day, bringing total losses to 11.7 per cent - well past correction territory.

The Dow had a more than 1,000-point difference between its high and low.

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