STREAMING NOW: Watch Now

Global stocks plunge after Wall Street bloodbath

The stunning rout in U.S. stocks has spread to global markets.European stocks were hit on Tuesday, with benchm...

Posted: Feb 6, 2018 3:22 PM
Updated: Feb 6, 2018 3:23 PM

The stunning rout in U.S. stocks has spread to global markets.

European stocks were hit on Tuesday, with benchmark indexes in Paris, London and Frankfurt dropping 2%.

Japan's Nikkei nosedived 4.7%, while Hong Kong's Hang Seng suffered a loss of 5.1%.

Those sharp falls came after a brutal trading session in U.S. markets on Monday. The Dow closed down 1,175 points, or 4.6%. It was by far the index's biggest ever point decline for a single trading day.

U.S. stocks swung wildly in early trade on Tuesday.

Related: This is why the Dow is plunging

The market turmoil began early last week but has now intensified.

"Traders are getting nervous there is more to come," said Greg McKenna, chief market strategist at currency trading platform AxiTrader.

Selling on global stock markets has ramped up because of expectations the U.S. Federal Reserve could increase interest rates more quickly than previously thought. Higher interest rates can weigh on companies' earnings and wreak havoc in bond markets.

The growing concerns about the pace of interest rate hikes came after U.S. jobs data on Friday showed wages were growing at their fastest pace since 2009. That's led to fears that inflation -- which has been unusually low in recent years -- could be about to make a big comeback.

Paul Donovan, global chief economist at UBS Wealth Management, said that investors should take a longer view.

"The significance of equity market losses is best viewed against the calm of past months. This is a rather abrupt reminder of what volatility looks like," he said. "Nothing has changed in economic terms."

Related: Market fear is back in a big way

The worries arrived at a time when the Dow and many other major stock indexes were trading near record highs. That had led some experts to warn that markets were overdue for a correction.

The sell-off in Japanese stocks was exacerbated Tuesday as investors flocked to the yen, which is often viewed as a safe haven during periods of market panic, said Jingyi Pan, a strategist at stockbroker IG Group.

A stronger yen is bad news for profits at big Japanese exporters.

The Nikkei has been one of Asia's strongest performing indexes lately, but its plunge this week has now erased all of its gains for the year so far.

-- Charles Riley and Daniel Shane contributed to this report.

Huntsville
Clear
68° wxIcon
Hi: 81° Lo: 63°
Feels Like: 68°
Florence
Clear
69° wxIcon
Hi: 84° Lo: 63°
Feels Like: 69°
Fayetteville
Clear
66° wxIcon
Hi: 81° Lo: 62°
Feels Like: 66°
Decatur
Clear
62° wxIcon
Hi: 82° Lo: 61°
Feels Like: 62°
Scottsboro
Overcast
64° wxIcon
Hi: 80° Lo: 61°
Feels Like: 64°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 153016

Reported Deaths: 2633
CountyConfirmedDeaths
Jefferson22563372
Mobile14335314
Tuscaloosa10023133
Montgomery9759196
Madison904893
Shelby709960
Lee644966
Baldwin640569
Marshall428248
Calhoun412759
Etowah405749
Morgan396833
Houston364632
DeKalb319628
Elmore310752
St. Clair282142
Limestone270828
Walker268892
Talladega258435
Cullman227623
Lauderdale208740
Autauga201029
Jackson200915
Franklin199731
Colbert192228
Russell19053
Dallas185627
Blount184824
Chilton181731
Escambia171328
Coffee16669
Covington166029
Dale163451
Pike130512
Chambers130143
Tallapoosa128686
Clarke127117
Marion104729
Butler99840
Barbour9889
Marengo97221
Winston90413
Geneva8417
Pickens80517
Lawrence80031
Randolph79814
Bibb79114
Hale74529
Cherokee72214
Clay71912
Lowndes70127
Henry6376
Bullock63517
Monroe6319
Washington62212
Crenshaw59330
Perry5806
Wilcox55912
Conecuh55713
Fayette55312
Cleburne5287
Macon52820
Sumter46721
Lamar4565
Choctaw38712
Greene33916
Coosa1973
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 233569

Reported Deaths: 2952
CountyConfirmedDeaths
Shelby34523553
Davidson29914326
Knox1193687
Hamilton11197103
Rutherford11090106
Williamson665649
Sumner5664107
Wilson443153
Putnam415653
Montgomery387251
Out of TN377535
Unassigned37264
Madison363079
Bradley343421
Sullivan324845
Sevier317321
Blount313932
Washington313244
Maury308135
Robertson249839
Hamblen233843
Tipton220622
Gibson205938
Dyer203726
Hardeman179532
Coffee177420
Trousdale17437
Obion164918
Bedford159620
Dickson157318
Fayette157022
Anderson156713
Greene156551
Wayne15657
Loudon155010
McMinn152232
Cumberland150124
Lawrence147918
Jefferson146619
Weakley144425
Carter142832
Monroe137027
Henderson136125
Warren135110
Hardin132219
Lauderdale131918
Macon126324
Franklin122816
Roane12017
Haywood119526
Overton113311
Johnson11067
Hawkins110524
White110214
Carroll109424
McNairy109126
Marshall10568
Rhea104916
Cheatham97311
Lake9703
Smith94713
Cocke92612
Bledsoe9244
Giles90134
Campbell8857
Fentress8618
Lincoln8142
Crockett78321
Henry74610
Hickman74413
Chester71314
Marion7089
DeKalb67716
Decatur62811
Grainger5394
Grundy5248
Claiborne5046
Union4992
Polk47413
Jackson4225
Humphreys4154
Morgan4116
Houston39215
Benton3919
Cannon3872
Clay37112
Unicoi3672
Lewis3522
Scott3324
Sequatchie3294
Stewart3117
Meigs2965
Pickett2495
Moore2452
Perry2081
Van Buren1911
Hancock1123

Community Events