After The Bell: What Does Wednesday's Plunge Mean?

Andy Giersher
October 10, 2018 - 6:13 pm

(AP Photo/Richard Drew)

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CHICAGO (WBBM NEWSRADIO) -- Stocks plunged on Wall Street Wednesday, suffering their biggest decline since February, as rising interest rates and concerns about financial market valuation put traders in a selling mood.

The S&P 500 lost 94, the Nasdaq shed 315 and the Dow Jones industrial average closed down over 830 points, settling to 25,598. All three of the major indices posted a decline of 3 percent or more, with shares of technology leading the rout.

"It was really selling all the way down today, it sold into the bell and continued afterwards,” Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, said.

“The fear right now is that we are putting an awful lot of treasury debt on to the market as we are financing our deficit and they have to increase yields to sell those bonds, investors are demanding that.”

Nolte added the markets could be in a self-perpetuating cycle right now.

 

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