Dow plummets 800 points, biggest drop in 8 months

Caution remains the key word across global markets as investors try to gauge whether the recent selloff has room to run

Caution remains the key word across global markets as investors try to gauge whether the recent selloff has room to run

Facebook fell 4.1 percent while Netflix and Google parent Alphabet were down 8.4 percent and 5.1 percent, respectively.

At 2:40pm local time, the Dow was down 510.76 points, or 1.93 per cent, at 25,919.51, the S&P 500 was down 55.64 points, or 1.93 per cent, at 2,824.70 and the Nasdaq Composite was down 185.52 points, or 2.40 per cent, at 7,552.19.

The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August.

The S&P 500 was down 55 points, or 1.9 percent, at 2,824-on pace for its worst day since June.

The Dow Jones industrial average gave up 738 points, or 2.8 per cent, to 25,686.

Stocks are extending their slump on Wall Street, led by drops in big technology companies, as rising bond yields draw investors out of stocks.

Alec Young, managing director of global markets research at FTSE Russell, said investors fear that rising interest rates and growing expenses are going to erode company profits next year.

The Philadelphia Semiconductor index sank 2.19 per cent, with Intel down 1.7 per cent. Nvidia, down 4.2 per cent, and AMD, down 5.7 per cent, were also hit by Huawei's plan to make chips for servers. The S&P 500 was off by 1.7 percent, putting it on pace for its first five-day losing streak in two years. It was at just 3.05 per cent early last week and 2.82 per cent in late August.

Heavyweights Apple shed 1.6 percent and fell 2.5 percent. Amazon skidded 4.8 per cent to $1,781.21 (U.S.).

Oil firms Hess Corp and Marathon Oil fell around 7 per cent as Chevron dropped 3 per cent ahead of the third-quarter earnings season.

Stocks fell Wednesday as concerns about global economic growth and ongoing trade tensions continued to hang over Wall Street and after the bond market resumed a sell-off that started last week.

Wall Street stocks has plunged with major indices losing more than three percent in a sell-off prompted by the sudden jump in USA interest rates. Intel dipped 3.76 percent today but that might be viewed lightly when you look at team Red and team Green's day on the market.

Investors sold off USA government bonds, with the two-year yield touching its highest point since June 2008. On Wednesday, the 10-year yield once again touched its highest level in seven years.

Following reports that Sears could file for bankruptcy protection as soon as this week, shares of the cash-strapped retailer plummeted as much as 37%. A move of more than two deviations, or 40 basis points now, leads to negative S&P 500 returns, Goldman says.

USA stocks dropped sharply Wednesday, as a selloff in technology stocks led the major indices to lows not seen since this spring. Eastern time. It's on pace to be the index's worst day since February 5, when it lost over 1,100 points in a single trading day. Copper fell 0.9 percent to $2.78 a pound.

The Dow Jones Industrial Average lost 117 points, or 0.4 percent, to 26,313.

USA crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09.