U.S. Stocks Close Down Nearly 546 Points
The Dow Jones closed down nearly 546 points on Thursday. Banks are taking some of the biggest losses.
The Dow Jones closed down nearly 546 points on Thursday.
The Dow was briefly in positive territory twice earlier in the day, but it wound up closing down another 546 points, or 2.1% on Thursday. The S&P 500 sank 2.1%, marking its sixth day of decline. Nasdaq ended 1.3% lower.
Bond yields, which have spiked over the last week, slid on Thursday after the Labor Department said consumer prices grew only slightly in September. That's a sign inflation remains under control and suggests the Federal Reserve won't have to raise interest rates at a faster pace, which initially gave stocks a modest boost.
Investors were on edge after a rout rolled through Asia on Thursday, driving China's benchmark to a four-year low and sending indexes in Japan, Korea and Australia plunging.
The sell-off began on Wednesday when the Dow plunged 832 points, or 3.1%. It was the second-biggest drop of the year for the blue-chip benchmark after Feb. 5, when it lost over 1,100 points in a single trading session.
Following the plunge, President Donald Trump said the Federal Reserve "is making a mistake" to hike interest rates. "I think the Fed has gone crazy," he charged.
Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices. That's made them particularly vulnerable to rise in interest rates, because it makes the stocks' already high valuations look even more stretched.
(The Associated Press, CBS News contributed to this report.)