Wall St slides 161 points
Tuesday 16 July 1996
By the close last night, the Dow Jones Industrial Average was off 161.05 points for the day at 5,349.51, down 2.92 per cent. Fuelling the slide was the technology-heavy Nasdaq composite, off by a bruising 43.14 points, or 3.91 per cent, at 1,060.36 as investors braced themselves for further potentially negative earnings results in coming days.
The retreats renewed speculation that Wall Street is not only in the midst of a major correction, but may be heading into bear market territory after months of gains. Yesterday's was the sharpest one-day drop on the Dow Jones for over two years, putting it down a full 7.3 per cent compared with its high reached on 22 May.
More dramatic is the outlook for the Nasdaq which for the past 18 months has been the best performing of the US markets. It is now 15.1 per cent off its high of early June.
Ron Daino of Smith Barney said: "If we reach a 20 per cent level then you have some problems from a historical point of view and the Nasdaq looks like it could reach that sort of level."
David Schulman, chief equity strategist at Salomon Brothers, said: "The market for the first time in many years has very real earnings fears and also still has to adjust to recent interest rate increases. You would normally expect to get a correction with these two factors".
Yesterday's carnage struck all stock sectors but technology stocks were hardest hit of all.
- 1 Revolutionary lost Caravaggio painting 'Mary Magdalen in Ecstasy' identified
- 2 McKamey Manor: This 'extreme' haunted house is the stuff of nightmares
- 3 Russell Brand says he will 'probably' give up acting to focus on his revolution
- 4 Watch what happened when food critics were unknowingly served McDonald's
- 5 David Beckham's Haig Club whisky is exactly what’s wrong with the Highlands
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
Eleven members of same family hospitalised after eating deadly pufferfish
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Phone-hacking: The Piers Morgan connection - Mirror admits some stories during Morgan's tenure may have been obtained by illegal means
Russell Brand says he will 'probably' give up acting to focus on his revolution
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
Poppy Appeal 2014: This is why I won't be wearing a red poppy this year
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...