US stocks plunge

Added On October 12, 2018

U.S. stocks closed sharply lower on Wednesday as rising rate fears and a tech share sell-off rattled the market.
Both the Dow and the S&P 500 erased more than 3 percent for the day, posting their biggest one-day drops since early February. The Nasdaq fell over 4 percent, the worst day since June 2016.
Wednesday also marked tech shares' worst day in more than seven years.
The S&P 500 Information Technology Sector went down by 4.77 percent, with all 65 members of the index ending on a downbeat note.
Investors have been concerned that the rates are rising too far and too fast that the economy will potentially be derailed.
Fed Chair Jerome Powell said earlier that the U.S. central bank had a long way to go before interest rates hit neutral, indicating that more hikes could be on the horizon.
Fears about rising bond yields also put pressure on the stock market.
The benchmark 10-year Treasury note yield hit 3.26 percent on Tuesday, the highest level since 2011. On Wednesday, two-year Treasury yield hit 2.91 percent, its highest level in a decade.
Experts noted that strong data and commentary from Fed officials can be bullish for equities, but that comes with the side effect of having concerns on more inflation and interest-rate increases, which in turn is a negative for equities.