Sudden jump in United States interest rates prompts Wall Street stock plunge

Dow falls 500 points as rising Treasury yields drag down market

This marks the sixth straight day of losses for the market, which has been rattled by rising interest rates, signs of a slowdown in the global economy and the U.S.

US crude fell 1.98 per cent to $71.72 per barrel and Brent was last at $81.30, down 2.15 per cent on the day. Investors bet on the falling trend and also awaited the beginning of earnings reports, causing many sectors and index exchange-traded funds to report record losses. Both indexes have fallen more than 5 percent the past two days.

The technology-heavy Nasdaq composite dropped 4.1% to 7,422 points, its biggest loss since February 8.

The markets landed in the red despite a government report that showed consumer prices rose 0.1 percent last month, less than expected.

The roller coaster morning follows Wednesday's 832-point loss, the biggest drop in seven years.

"Clearly stocks are spooked by higher rates and maybe some inflation that seems to be creeping in", said Michael Farr, CEO of Farr, Miller & Washington.

Tech leaders Amazon (AMZN), Facebook (FB) and Netflix (NFLX) all helped lead the market lower Wednesday while stodgier companies like food companies Smucker (SJM) and General Mills (GIS), gold miner Newmont (NEM) and bargain retailers Dollar General (DG) and Dollar Tree (DLTR) finished the day higher. "But this nothing to be overly concerned about", Alexander said.

And Geoff Alexander, the president of R. M. Davis, a wealth management firm, said he wasn't getting too nervous about Wednesday's market madness either.

The benchmark S&P 500 index slipped 55 points, or 2 percent, to 2,729 after it fell 3.3 percent Wednesday. The FAANGs, spread over three sectors, were down between 1.4 percent and 5.4 percent.

The market had enjoyed a stretch of relative calm, where even big intraday losses were erased by the end of the day. "We're hoping for a quiet day tomorrow".

US markets are coming off their steepest losses in eight months.

Amazon has soared 50 percent this year, but has fallen 14 percent from its all-time high in early September.

Volume on US exchanges was 11.44 billion shares, its highest level since February and compared with the 7.65 billion-share average for the full session over the last 20 trading days. "Fear is being transmitted from market to market", he said.

Wall Street indexes continued their slide in Thursday's volatile session as investors anxious about rising interest rates and braced for a trade war hit to corporate earnings a day ahead of the quarterly reporting season kickoff. "[It is] likely that this negative sentiment could roll over to the Asian markets in the short term", she wrote.

"The Fed is making a mistake". "I think the Fed has gone insane", he charged. "But I really disagree with what the Fed is doing, OK?"

There are ongoing concerns about the unresolved trade dispute between the USA and China.

Treasury Secretary Steven Mnuchin met with Chinese central banker Yi Gang at a World Bank conference in Indonesia on Thursday, a day after he warned China against "competitive devaluation" of its currency against the US dollar as the trade war escalates. After years of big gains, those stocks are now out of favor.

"It's a momentum correction, not a portfolio correction", Joe Terranova, chief market strategist at Virtus Investment Partners, told CNBC.

Every S&P 500 sector fell heavily, with big-name technology stocks like Facebook and Apple among the biggest drags on the USA market.

Shih reported from Hong Kong.

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