By CCN.com: The Dow and broader U.S. stock market plunged anew on Wednesday, as global growth concerns hastened investors’ exit from riskier assets and into safe havens like government debt.
All of Wall Street’s major indexes traded lower in the afternoon session, extending a brutal pre-market for Dow futures. The benchmark Dow Jones Industrial Average reached a session low of 24,938.24. It was the first time the index fell below 25,000 in four months.
The Dow would eventually settle down 221.36 points, or 0.9%, to 25,126.41.
The broad S&P 500 Index of large-cap stocks fell 0.7% to finish at 2,783.02. All 11 primary sectors traded lower. Four sectors recorded a loss of 1% or more, with utilities leading the declines. Shares of communication services and health care companies also fell sharply.
Plunging tech and communication shares wreaked havoc on the Nasdaq Composite Index, which fell 0.8% to 7,547.31.
Treasury yields fell to fresh 18-month lows on Wednesday, as concerns about a prolonged U.S.-China trade war and slowing global economy pulled investors into the perceived safety of government bonds.
The yield on the benchmark 10-year U.S. Treasury note, which impacts everything from mortgage rates to lines of credit, reached a session low of 2.21%, according to CNBC. Bond yields decline as prices rise. The 10-year yield is currently hovering near its lowest level since September 2017.
Investors are flocking to government bonds over an escalating trade war with China and its potential to disrupt an already shaky global economy. U.S. economic indicators ranging from consumer spending to factory production have weakened at the start of the second quarter, mirroring the synchronized slowdown in the global economy.
On Thursday, the Commerce Department will deliver its second reading of first-quarter GDP. The preliminary estimate showed an annual expansion rate of 3.2% between January and March that was much higher than expected. The second estimate will likely be revised lower, according to a median forecast of economists.
Click here for a real-time Dow Jones Industrial Average price chart.
Last modified: September 23, 2020 12:45 PM