Dow Jones drops 832 points in third worst drop in history

Wall Street slumps as investors dump tech stocks

Wall Street slumps as investors dump tech stocks

The Dow plunged almost 832 points on Wednesday, the third-worst point decline in history. The index fell by more than 3%. Nasdaq composite, which has a high concentration of technology stocks, tumbled 244 points, or 3.2 per cent, to 7,495.

All 11 sectors in the S&P 500 are lower, with banks and energy stocks the hardest hit. The Nasdaq's 2-percent drop pulled it 7.1 percent away from its high. The Nikkei was down more than 3% in morning trading Thursday.

The decline came amid a widespread selloff on Wall Street, which spilled over into global markets overnight as investors reacted to the "sheer magnitude of the move", OANDA analyst Stephen Innes wrote in a note to investors. All three indexes are in the red this month. The Kospi in South Korea fell 3.6 percent to 2,148.97. The index has declined 6.7 percent during its current losing streak. The index fell 23% in 1914 and on "Black Monday" in 1987.

The Technology Select Sector SPDR Fund also fell 4.85 percent for the first time since August 2011.

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 #MAGA theme is unraveling a bit over the past few sessions as two-sided risks have been injected into the United States equity market", Mark McCormick, head of North American FX strategy at TD Securities, wrote in an email.

Trade-sensitive industrial stocks also fell as tensions between Washington and Beijing persisted. Major tech companies like Microsoft ($MSFT), Facebook ($FB), and Alphabet ($GOOGL) had rebounded from Wednesday's losses with slight gains.

But there were few places to hide Wednesday. "Semiconductors have the most exposure to China out of segments in the S&P 500".

Some of the biggest losers were tech companies.

Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange on Wednesday.

Other markets shadowed the Dow. It was showing signs of Greed just a month ago.

"The market is not necessarily going to take out much from the yield path", Goncalves said. Markets are still rattled and they appear headed for a second day of significant losses.

United States stock indexes dived around 1 percent on Wednesday as worries over China and the impact of rising Treasury yields on global growth drove falls in luxury goods companies and chipmakers.

Bond prices rose as the recent surge in yields attracted the attention of some investors.

Still, there's reason not to get too anxious yet, say some.

"People are trying to get a sense of 'where should my money actually be right now?'" said JJ Kinahan, chief market strategist for TD Ameritrade. Thus, it isn't surprising that we're finally getting a bit of volatility. This slide was long overdue.

Monthly inflation numbers are out in the US. "But this nothing to be overly concerned about", Alexander said.