The Dow Jones industrial average plunged more than 2 percent and 550 points Friday and was set to close its worst week in two years as fears over rising interest rates and inflation from an overheated economy pulled the blue chips down following a remarkable run.
And for more comparison, when the Dow Jones lost all those points during the 2008 financial crisis, it amounted to nearly an 8 percent drop in a single day.
The Dow, the S&P 500 and the Nasdaq composite are on track to post their biggest weekly losses in two years, snapping four-week winning streaks spurred by strong corporate earnings and signs of an improving global economy.
Exxon Mobil reported fourth-quarter earnings of 88 US cents per share, excluding the impacts of the USA tax reform and impairments, falling far short of market expectations.
Tech giant Apple reported better-than-expected quarterly results.
The higher wage growth and potentially higher inflation "might then lead the Federal Reserve to raise their interest rates more rapidly than the market is comfortable with", he told NPR's John Ydstie.
U.S. Treasury yields continued to climb after economic indicators seemed to confirm the Fed's inflation views. A total of 1,290,878 shares exchanged hands during the intra-day trade contrast with its average trading volume of 1.00M shares, while its relative volume stands at 1.29.
Analysts at major investment banks have said that yields have more room to run higher and will seriously affect the stock market if only the USA 10-year Treasury breaks above 3 percent.
MARKETS OVERSEAS: Major stock indexes in Europe declined.
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The Canadian dollar was trading 1 per cent lower at 80.65 USA cents.
On Black Monday, for example, during the stock market crash of October 19, 1987, the Dow dropped 22.6%, which back then amounted to 508 points.
O'Hare said lackluster earnings added to the selling momentum, with some of the biggest United States companies suffering dramatic declines after disappointing the market.
Gold futures and copper prices both decline.
MSCI's all-country world index of equity performance in 47 countries fell 1.07 pe rcent while its gauge of emerging market stocks lost 1.54 per cent.
The materials group, which includes precious and base metals miners and fertilizer companies, lost 2.5 per cent. Barrick Gold Corp. slipped 3.2 per cent to $17.13, and Goldcorp Inc. fell 1.5 per cent to $17.25. The euro weakened to $1.2440 from $1.2502. In Asia, Japan's benchmark Nikkei 225 fell 0.9 percent and South Korea's Kospi slid 1.7 percent.
CURRENCIES: The dollar rose to 110.40 yen from 109.42 yen on Thursday.
BITCOIN: The price of bitcoin was down 0.5 percent to $9,006, according to the tracking site CoinDesk.
The MSCI Asia Pacific Index fell 0.7 percent.