Dow Drops 1,000 Points, Enters Correction Territory
February 8, 2018
The sharp sell-off on Wall Street is sending the Dow Jones Industrial Average into a more than one-thousand point spiral. All three major indexes suffered severe losses on Thursday during a trading session fraught with wild swings.
The Dow finished 1,033 points lower at 23,860 and has now lost more than 10% from its record high on January 26th.
The S&P 500 also suffered, plummeting 101 points to finish at 2,581. The Nasdaq dropped 275 points to close at 6,777.
Healthy company earnings reports and another drop in the number of Americans filing for weekly unemployment benefits couldn't stop the carnage. Twitter and Grubhub reported quarterly results that exceeded analysts' expectations. CVS and T-Mobile also reported better-than-expected results.
Earlier, the Labor Department reported initial claims for unemployment benefits fell by 9,000 to a seasonally adjusted 221,000 for the week ending February 3rd, beating analysts' expectations and remaining near a 45-year low.
The major sell-off has been a result of investors worried about rising interest rates and the "resurgent threat of inflation and higher bond yields," according to Bloomberg.
“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. “They could be in full panic mode right now.”