After initial gains, the Dow lost as many as 699 points.

The S&P 500 fell more than two percent and Nasdaq 100 Index’s losses are approaching 10 percent on Thursday.

Yesterday’s drop of nearly 832 points was the third-worst point decline in history.

Former congressman Ron Paul told RT that a major crash is just a matter of time.

He said the US is approaching the “biggest bubble in the history of mankind.”

Technology shares were the among the hardest hit, especially Netflix, Amazon, and Google parent Alphabet.

The markets are still struggling to rebound from Wednesday’s sell-off that wiped 832 points off the index.

It is the worst opening to a fourth-quarter for a market since 2008, according to Market Watch.

The last time there was as much turbulence was the Brexit vote in 2016 which shook global markets.

It comes as investors grow increasingly concerned about global economic growth and rising interest rates.

The Federal Reserve is raising interest rates which makes it more expensive for companies to borrow and harms share prices.

Investors are nervous a trade war would slash profits.

President Trump took aim at the Fed, accusing them of “making a mistake” after walking off Air Force One in Erie, Pennsylvania for a rally.

He said: ”I think the Fed is making a mistake.

“They are so tight. I think the Fed has gone crazy.

“Actually, it’s a correction that we’ve been waiting for for a long time, but I really disagree with what the Fed is doing.”

The situation was worsened after the International Monetary Fund downgraded its predictions for global growth this week.

It is now forecasting 3.7 percent global growth in both 2018 and 2019, down from its July forecast of 3.9 percent growth for both years.

Maurice Obstfeld, the IMF’s chief economist, pointed part of the blame to growing tensions between the US and China, who are currently locked in an increasingly bitter trade war.

Mr Obstfeld said at a media briefing about the fund’s latest World Economic Outlook: “When you have the world’s two largest economies at odds, that’s a situation where everyone suffers.”

He continued: ”Trade policy reflects politics and politics remain unsettled in several countries, posing further risks.”

Rising US Treasury yields have also been a worry for traders and investors.

The benchmark 10-year note yield recently soared its highest level in seven years while the two-year yield reached its highest mark since 2008 earlier this week.

A German financial expert also warned the Dax is in “crash mode”.

Christian Schmidt of Landesbank Helaba said: “There was plenty of reason to worry about the state of the markets.”

The analyst referred to the trade dispute between the US and China, the national debt of Italy and, above all, rising interest rates.

Additional reporting by Levi Winchester

As seen on
Daily Express :: Finance Feed

LEAVE A REPLY

Please enter your comment!
Please enter your name here