Global stocks plunge after Wall Street bloodbath

The stunning rout in U.S. stocks has spread to global markets.European stocks were hit on Tuesday, with benchm...

Posted: Feb 6, 2018 3:22 PM
Updated: Feb 6, 2018 3:23 PM

The stunning rout in U.S. stocks has spread to global markets.

European stocks were hit on Tuesday, with benchmark indexes in Paris, London and Frankfurt dropping 2%.

Japan's Nikkei nosedived 4.7%, while Hong Kong's Hang Seng suffered a loss of 5.1%.

Those sharp falls came after a brutal trading session in U.S. markets on Monday. The Dow closed down 1,175 points, or 4.6%. It was by far the index's biggest ever point decline for a single trading day.

U.S. stocks swung wildly in early trade on Tuesday.

Related: This is why the Dow is plunging

The market turmoil began early last week but has now intensified.

"Traders are getting nervous there is more to come," said Greg McKenna, chief market strategist at currency trading platform AxiTrader.

Selling on global stock markets has ramped up because of expectations the U.S. Federal Reserve could increase interest rates more quickly than previously thought. Higher interest rates can weigh on companies' earnings and wreak havoc in bond markets.

The growing concerns about the pace of interest rate hikes came after U.S. jobs data on Friday showed wages were growing at their fastest pace since 2009. That's led to fears that inflation -- which has been unusually low in recent years -- could be about to make a big comeback.

Paul Donovan, global chief economist at UBS Wealth Management, said that investors should take a longer view.

"The significance of equity market losses is best viewed against the calm of past months. This is a rather abrupt reminder of what volatility looks like," he said. "Nothing has changed in economic terms."

Related: Market fear is back in a big way

The worries arrived at a time when the Dow and many other major stock indexes were trading near record highs. That had led some experts to warn that markets were overdue for a correction.

The sell-off in Japanese stocks was exacerbated Tuesday as investors flocked to the yen, which is often viewed as a safe haven during periods of market panic, said Jingyi Pan, a strategist at stockbroker IG Group.

A stronger yen is bad news for profits at big Japanese exporters.

The Nikkei has been one of Asia's strongest performing indexes lately, but its plunge this week has now erased all of its gains for the year so far.

-- Charles Riley and Daniel Shane contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 513622

Reported Deaths: 10264
CountyCasesDeaths
Harrison34892556
DeSoto33234432
Hinds32638641
Jackson24854389
Rankin22507403
Lee16337242
Madison14922283
Jones14113247
Forrest13766259
Lauderdale12270324
Lowndes11305193
Lamar10659140
Pearl River9719244
Lafayette8846143
Hancock7836132
Washington7550169
Oktibbeha7210138
Monroe7010179
Pontotoc6990109
Warren6863178
Panola6759134
Neshoba6730210
Marshall6678141
Bolivar6445151
Union638297
Pike5928156
Alcorn5879107
Lincoln5530136
George510180
Prentiss503884
Tippah491482
Itawamba4844107
Scott477899
Adams4768125
Tate4756116
Leflore4729144
Copiah456495
Yazoo456491
Simpson4546117
Wayne443072
Covington433695
Sunflower4299106
Marion4277112
Coahoma4237109
Leake413990
Newton395781
Tishomingo383593
Grenada3777109
Stone365866
Jasper340666
Attala338290
Winston317892
Chickasaw315467
Clay312278
Clarke301195
Calhoun285049
Holmes271889
Smith269052
Yalobusha243947
Tallahatchie231553
Greene224749
Walthall221666
Lawrence218740
Perry213456
Amite209857
Webster205348
Noxubee188742
Montgomery181657
Carroll174541
Jefferson Davis173643
Tunica163239
Benton152939
Kemper145041
Choctaw136727
Claiborne134338
Humphreys131239
Franklin125529
Quitman107628
Wilkinson105939
Jefferson96934
Sharkey65221
Issaquena1957
Unassigned00

Alabama Coronavirus Cases

Cases: 845284

Reported Deaths: 16116
CountyCasesDeaths
Jefferson1161552006
Mobile742111380
Madison53307732
Shelby38338368
Baldwin38085589
Tuscaloosa36022641
Montgomery34492781
Lee25562263
Calhoun22586518
Morgan22459406
Etowah20018517
Marshall18782316
Houston17731425
St. Clair16884358
Limestone16148218
Cullman16054303
Elmore15904294
Lauderdale14989306
Talladega14196299
DeKalb12972269
Walker12030380
Blount10717192
Autauga10517157
Jackson10162194
Coffee9417192
Colbert9342208
Dale9020191
Tallapoosa7256201
Russell708165
Chilton7018170
Escambia6957143
Covington6933195
Franklin6342108
Chambers5784142
Marion5406130
Dallas5285209
Pike5119109
Clarke484986
Lawrence4826129
Winston4780110
Geneva4642136
Bibb434094
Barbour369580
Butler3435100
Marengo342493
Monroe337266
Randolph334867
Pickens333188
Fayette330385
Henry320666
Hale318389
Cherokee317863
Crenshaw260477
Washington257052
Cleburne254460
Lamar251453
Clay250869
Macon244864
Conecuh192862
Coosa185047
Lowndes178168
Wilcox177438
Bullock152645
Perry141840
Sumter139241
Greene130245
Choctaw93228
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