Wall Street tumbles as investors take the knife to tech companies

Augustine added that with earnings due out from big banks JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) on Friday morning, investors will look for new market sectors to take the lead from tech stocks.

This time around, strong economic data anxious bond investors, who sent the benchmark yield on Tuesday to 3.261 percent, the highest since early May 2011. The yield was just 2.82 percent in last August. Brent crude, the global standard, lost 2.2 per cent to $83.09 a barrel in London.

Big moves in interest rates tend to unsettle investors, and they can also push them to sell stocks and buy bonds instead. Stocks had come close to big drops in the last few days, but each time they recovered some of their losses. Nvidia wasn't spared either as the GPU-manufacturer out of Santa Clara, CA saw a drop of seven-and-a-half percent itself which brings its year-to-date market gain to 33 percent. As the base rate from the Fed increases, the value of existing bonds with low-interest drops, which means when bought they will yield higher given a lower base price (price you paid to acquire them).

The S&P 500 fell 54 points, or 1.9 percent, to 2,825.

Gold rose 0.2 per cent to $1,193.40 an ounce. Copper fell 0.9 per cent to $2.78 a pound.

Stocks have slumped over the last week as a combination of strong economic data and positive commentary from Federal Reserve leaders sent bond yields rocketing higher as investors bet that interest rates will keep rising.

Technology giants have suffered an investor rout that sent USA stock markets falling heavily on Wednesday.

Apple gave up 4.6 per cent to US$216.36 and Microsoft dropped 5.4 per cent to US$106.16.

Benchmark U.S. 10-year Treasury notes rose late in the day, pushing yields down to 3.1931 percent.

India buying Iran oil in defiance of Trump sanctions
Olivier Jakob of Petromatrix said: "One way or another, it looks as though India is going to take some Iranian crude". Saudi Arabia is the biggest oil exporter in the world and India is the third largest oil importer in the world.

On Friday, federal data showed that the US jobless rate fell to 3.7 percent in September, it's lowest point since 1969.

Sears Holdings plunged 32 percent after the Wall Street Journal said the debt-laden retailer was preparing for a possible bankruptcy.

The S&P 500 closed down 94 points with the broad market index heading for its worst day since June. The Dow Jones Industrial Average fell 831 points, its worst loss in eight months.

The Nasdaq 100 Index plummeted more than four percent as Wall Street endured its sharpest one-day fall in months.

USA stocks plunged to their worst loss in eight months on Wednesday as technology companies continued to drop. Amazon skidded 6.2 percent to $1,755.25 and Alphabet, Google's parent company, gave up 4.6 percent to $1,092.16.

Tech stocks and companies that sell non-essentials to consumers have been some of the top performers over the previous year, gaining almost twice as much ground as the S&P 500.

Benchmark US crude oil fell 2.4 per cent to US$73.17 a barrel in NY.

Bond prices fell. The yield on the 10-year Treasury rose to 3.23 per cent.

Tom Cahill of Ventura Wealth Management said investors were also unnerved by remarks from luxury company LVMH of a crackdown on some goods in China amid the country's bitter dispute with the United States.

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