US stocks plunge in broad-based sell-off

Comment on this story
IOL bus oct30 world stocks Reuters File photo

New York - US stocks plunged around 2 percent on Friday, sinking for a second straight day on concerns over emerging economies and disappointments in US corporate earnings.

The Dow Jones Industrial Average fell 318.24 (1.96 percent) to 15,879.11.

The broad-based S&P 500 plummeted 38.17 (2.09 percent) to 1,790.29, while the tech-rich Nasdaq Composite Index sank 90.70

(2.15 percent) to 4,128.17.

Analysts said investors were jittery about steep drops in the Argentine peso and other emerging-market currencies.

Another concern has been a stream of middling corporate middling earnings reports that have suggested big companies foresee weaker demand than expected this year.

“I still believe it's part of a correction and not the beginning of some crisis of some kind,” said Jack Ablin, chief investment officer at BMO Private Bank.

Some experts estimate the stock market is 10-20 percent overvalued after the surge of 2013, Ablin said.

“I was hopeful that fundamentals would pick up,” Ablin said. “But so far earnings season, while reasonable, hasn't been a huge positive surprise.” - Sapa-AFP

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines