US open: Markets plummet amid concerns over Eurozone economy
US stocks plummeted on Wednesday, as concerns over the Eurozone economy and weak economic data weighed heavily on markets.
Bank of America Corp.
$40.11
11:09 04/10/24
eBay Inc.
$66.29
11:24 04/10/24
Netflix Inc.
$719.70
13:04 04/10/24
QUALCOMM Inc.
$168.90
13:09 04/10/24
The S&P 500 was down 0.9% by 10:23 in New York, while the Dow Jones Industrial Average fell 0.8% and the Nasdaq dropped 0.6%.
In Europe, German Bund yields fell to a record low on as fears over a deteriorating Eurozone economic outlook continued to mount, after another credit rating blow for France and "free falling" inflation expectations dominated the market.
On Wednesday, Commerce Department figures showed retail sales in the US fell more than expected in September, with a 0.3% decline exceeding the 0.2% fall estimated by estimates, following a 0.6% gain in August, the biggest increase in four months.
The producer price index for September fell 0.1% as opposed to expectations of a 0.1% gain.
Meanwhile, sales at automobile dealers fell 0.8%, the most since January, after a 1.9% increase the prior month.
According to data from Ward’s Automotive Group, sales fell to a 16.3m annualised rate in September, its lowest level since April, from a 17.5m pace a month earlier that was the highest since January 2006.
In corporate news, Bank of America dropped slightly after reporting a third-quarter loss that was smaller than expected, while Abbvie Inc. shares fell sharply in pre-market trading after the drug maker said it was reconsidering a $54bn deal to buy Shire, as the deal was made less appealing by a new set of rules introduced by the Treasury.
As a result, Shire shares dropped sharply, where they weighed heavily on the FTSE 100, and in New York.
Ebay, American Express and Netflix slid back after the bell with all three companies to report results after the bell, while Qualcomm Inc. rose after announcing it had offered to buy UK chip maker CSR for $2.5bn
Firms that have benefited from the growing concerns about the Ebola virus rallied once again on Wednesday, with Lakeland Industries, Versar and Alpha Pro Tech registering significant gains.
The yield on the 10-year Treasury note fell 16 basis points to 2.03%, while the five-year note yield shed 18 basis points to 1.26% and the 30-year bond yield was down 20 basis points to 2.76%.
The dollar dropped sharply against the euro and the yen, losing almost 1.5% against both currencies, while the greenback dropped almost percentage point against the pound.
West Texas intermediate crude rose for the first time in sessions and was trading at just under $82 a barrel.