Share

US stocks drop sharply

New York - US shares fell sharply as markets opened Thursday morning on a spate of negative news including Spain's sovereign downgrade and poor US trade data, as well as intensified fighting in Libya.

At 1500 GMT the Dow Jones Industrial Average had lost 190.34 (1.56%) at 12 022.75, while the broader S&P 500 was down 21.43 (1.62%) to 1 298.59.

The tech-heavy Nasdaq Composite lost 47.17 (1.71%) to 2 704.55.

The unexpectedly large increase in the US trade deficit and China turning in its own rare trade shortfall in February helped send a range of stocks tumbling, especially those linked to primary commodities, capital goods and energy.

Miner Freeport-McMoran dropped 3.9% as key ore prices fell.

New York-traded shares of Brazilian mining giant Vale SA were off 3.6%.

GM shares fell 3.0% after the company announced the departure of its chief financial officer.

"The US equity markets are under solid pressure in morning action, with concerns about the euro-area debt crisis being exacerbated by a sovereign debt rating cut of Spain by Moody's Investors Service," the brokerage Charles Schwab said in an early analysis.

"Also, weaker-than-expected trade data out of China, Germany, and the US are amplifying the negative tone on (Wall) Street, along with a larger-than-forecasted increase in US weekly initial jobless claims."

Bond prices gained ground. The yield on the 10-year Treasury fell to 3.43% from 3.47% late Wednesday, while the 30-year note dropped to 4.58% from 4.60%.

Bond prices and yields move in opposite directions.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders