Stock Market Is Set to Plunge Again At Open

Wednesday, 07 Feb, 2018

The Dow Jones opened down 500 points but quickly recovering almost 650 points, before dipping again to 24,172.46 - down 0.71 percent - as of 10.39am EST (3.39pm GMT).

USA markets briefly bounced after a torrid opening on Tuesday, with bargain-hunters and gains for Apple pushing the tech-heavy Nasdaq and the Dow Jones Industrial Average into positive territory after two consecutive days of heavy losses.

The expected opening plunge follows two days of steep losses. After two huge sell-offs in a row, USA stocks were all over the map on Tuesday.The Dow Jones industrial average opened with a big whoosh lower, then rallied all the way back.

The futures dip follows a rough night for global markets.

Stocks in Europe and Asia subsequently tumbled, with Japan's Nikkei Stock Average declining 4.7 percent on Tuesday, its biggest daily point drop since the UK Brexit vote in 2016, and Hong Kong's Hang Seng seeing its biggest point decline since early 2008.

The slide is widely seen as the result of traders worrying about future interest rate rises.

Although the stock selling began Friday after a stronger-than-expected report on wages sparked worries about a return of inflation to the United States, it extended into this week as a combination of computer-driven trading, withdrawals from popular exchange-traded funds, and margin calls on investors who had bought stocks with debt all contributed to selling.

Margin debt in the stock market hit a record past year, rising to at least $561 billion at the end of October.