Time: 6: 56 p.m. CEST
The United States stocks go down on Thursday, while market volatility in China and lower prices of oil unnerved investors, Reuters reports. At 10:47 a.m. ET (1546 GMT), the Dow Jones industrial average was down 142.21 points, or 0.84 percent, at 16,764.3, the S&P 500 was down 19.47 points, or 0.98 percent, at 1,970.79 and the Nasdaq Composite index was down 67.34 points, or 1.39 percent, at 4,768.43. Bloomberg reported that, billionaire investor George Soros, “speaking at an economic forum in Sri Lanka, compared the present environment and the financial crash of 2008.” Soros said, “global markets are facing a crisis and investors need to be very cautious.”
As Reuters reports, Richmond Federal Reserve President Jeffrey Lacker said, the central bank may need to raise interest rates more than four times this year if oil prices stabilize, the dollar stops appreciating and inflation surges toward the U.S. central bank’s 2 percent target. The traders expect the Fed to raise rates at least twice in 2016, Reuters reports.
Meanwhile, the World Bank cut its global economic growth forecast for 2016. All 10 major S&P 500 sectors were lower with the industrials index’s 1.4 percent fall leading the decliners. The CBOE Volatility Index, the market’s favored gauge of Wall Street anxiety, was up 9.8 percent at 22.66, after opening at its highest level since Dec. 14.
Data showed the number of Americans filing for unemployment benefits fell last week from a more than five-month high. The report comes ahead of the government’s closely watched monthly employment report due for release on Friday.
Shares of Apple were down 1.3 percent at $99.36, following reports of slowing shipments of the iPhone 6S and 6S Plus.
Yahoo fell 3.8 percent to $30.96 after Business Insider reported the company was working on a plan to cut its workforce by at least 10 percent. Alibaba, in which Yahoo has a stake, was down 4.1 percent at $74.16.
Declining issues outnumbered advancing ones on the NYSE by 2,498 to 456. On the Nasdaq, 2,236 issues fell and 434 advanced.
The S&P 500 index showed 1 new 52-week high and 71 new lows, while the Nasdaq recorded 12 new highs and 200 new lows.
The markets reacted after China allowed the biggest fall in the yan in five months, and Shanghai stocks were halted for the second time this week. “Global stocks, however, trimmed losses after the Shanghai and Shenzhen stock exchanges said China would suspend the circuit breaker as of Friday. The mechanism has been in place the start of this year,” Reuters writes.