Markets Take Nosedive Erasing all of Gains for 2014
- Updated: October 15, 2014
Stock gains for 2014 evaporated under a Wednesday broad-based selloff as fears over a slowing worldwide economy, the spreading deadly Ebola virus and corporate earnings rattled an already skittish Wall Street.
The Dow Jones was down by 345 points at 2:20 pm ET on Wednesday losing 2.36%. The S&P 500 at the same time was off by 45 points or 2.17%, while the Nasdaq shed 86 points or just over 2%.
The Dow has not lost this much in intra-day trading since August 10 of 2011 when it shed nearly 520 points during the Eurozone debt crisis.
Wednesday’s losses, which marked the fifth consecutive drop for the Dow, put the Dow in correction mode as it approached 10% in losses.
The day started bad in Europe where the FTSE dropped by 1.9% and the DAX in Germany and the CAC in France both lost close to 3% after Germany the largest economy in Europe lowered its projection for growth.
Investors have also become unnerved by fresh fears over the Ebola virus and U.S. economic data that has been weaker than was expected, which included a report from the Commerce Department indicating retail sales for September dropped 0.3%.
Selling pressure was broad based with financial and bank stocks hit hard. Bank of America dropped over 5.4 %, while Citigroup was off 6.5%, with JPMorgan shedding 5.4%.
Airline stocks took a hit as prospects of traveling being curtailed because of the Ebola virus spreading.
United Continental lost 6%, Delta shed 4.7% and American Airlines lost 4.3%
Amongst tech stocks, Microsoft dipped 2% and Intel lost 3%.
Volatility, which has been the dominate force in the market for most of the first half of October, against dominated sentiment on Wednesday. The Dow saw a swing off close to 600 points. Investors fled to the safety of Treasury bonds with the yield pushed below 2% for 10-year notes.
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