Dow Falls 1300 Points In 48 Hours As Market Rout Continues (DJIA)(SPX)

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United States stocks are tumbling for a second straight day, with the Dow Jones industrials falling as much as 2.5 per cent and the benchmark S&P 500 suffering a similar decline.

Some analysts have blamed rising interest rates for the selloff.

Technology stocks slid more than 2 percent, the most among the 11 major S&P sectors, with the Philadelphia Semiconductor index down 3 percent after Swiss vacuum valve maker VAT Group said demand from chip equipment makers was softening. Markets in France, Britain and Germany fell after stocks declined sharply in Hong Kong and Japan.

Some of America's biggest tech stocks were caught up in the sell-off, with Netflix (Xetra: 552484 - news) down 8%, Microsoft (Euronext: MSF.NX - news) sliding 5%, Amazon off by 6% and Google's parent company Alphabet (Xetra: ABEA.DE - news) down 5%.

The rise in US Treasury yields has been bolstered by good US economic data that has reinforced expectations of multiple rate hikes over the next 12 months by the Federal Reserve. "They're so tight. I think the Fed has gone insane", he told reporters while traveling in Pennsylvania on Wednesday. The Nasdaq's 2-percent drop pulled it 7.1 percent away from its high. The two-year yield rose to 2.88 percent from 2.87 percent, and the 30-year yield climbed to 3.38 percent from 3.37 percent. But higher interest rates can slow economic growth and erode corporate profits.

The Dow Jones Industrial Average was down another 150 points in early trading as investor concerns over rising interest rates and the trade war with China continue to mount, but rebounded quickly, moving into positive territory within 25 minutes as bargain hunters emerged.

The Nasdaq composite, which has a high concentration of technology companies, suffered its biggest loss in more than two years and has dropped nearly 8 percent since the start of October.

The 10-year Treasury yield rose to 3.22 per cent from 3.20 per cent late Tuesday after earlier touching 3.24 per cent. The benchmark index fell for the fifth straight day, which hadn't happened since just before the 2016 presidential election.

MSCI's gauge of stocks across the globe fell percent, its biggest single-day fall since February.

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Technology and retail companies continued to stumble.

Earnings season kicks off with reports from JPMorgan Chase, Citigroup and Wells Fargo. The Kospi in South Korea fell 3.6 percent to 2,148.97.

US crude dropped 3 percent while Brent crude, the worldwide standard, dropped 3.4 percent. After years of big gains, those stocks are now out of favor.

The Nasdaq composite has fallen 9.7 percent since it set a record high in late August.

Wholesale gasoline shed 2.7 per cent to $2.02 a gallon.

The Producer Price Index increased 0.2% in September and reported a 2.6% annual increase.

Gold rose 0.2 per cent to $1,193.40 an ounce.

The Japanese yen strengthened 0.01 per cent versus the greenback at 112.29.