Bloodletting continues on Wall Street, as major US indices fall 2 per cent to hit 14-month lows
- No market segment went unscathed ahead of the US Fed’s meeting this week
US equity indices slid to their lowest close in 14 months as investors weighed the impact of the Federal Reserve on growth in an economy already anxious over trade, geopolitical tensions and a possible government shutdown.
Wall Street’s major indices each slid more than 2 per cent.
Speaking in a CNBC interview, DoubleLine Capital’s Jeffrey Gundlach suggested that US stocks are in a bear market. He also said that the Federal Reserve should not raise interest rates. Those comments triggered early bloodletting, which worsened in the afternoon.
“The markets right now are emotionally drained and are very prone to sell-offs,” said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. “It’s really about sentiment, and the Gundlach statement didn’t help the market.”
The Dow Jones Industrial Average fell 507.73 points, or 2.11 per cent, the S&P 500 lost 59.96 points, or 2.31 per cent, t and the Nasdaq Composite dropped 156.93 points, or 2.27 per cent. Stocks overall were at 14-month lows.