Dow closes more than 700 points lower as trade fears spark plunge
By RYAN VLASTELICA
MarketWatch.com
Mar 22, 2018
U.S. stocks fell sharply on Thursday, with major indexes suffering their worst day in weeks as the treat of a trade war with China sparked a widespread selloff.
Losses accelerated throughout afternoon trading, pushing the S&P 500 into negative territory for the year in a decline that showed signs of panic. Also weighing on sentiment was the latest policy statement by the Federal Reserve a day earlier, which raised questions about interest-rate policy; ongoing weakness at Facebook, which led the technology sector lower; and the resignation of President Donald Trump’s lead attorney, which added another element of political uncertainty for investors.
What are the main benchmarks doing?
The Dow Jones Industrial Average DJIA, -2.93% dropped 723.42 points, or 2.9%, to end at 23,957.89. The decline took the blue-chip average to its lowest close since Feb. 8, and marked its second-lowest close of the year. At current levels, it is 10% below the all-time high hit earlier this year.
The S&P 500 SPX, -2.52% fell 68.24 points to 2,643.69, a decline of 2.5%. The benchmark index turned negative for the year, and is 8% below its all-time high. It closed at its lowest level since Feb. 9. The Nasdaq Composite Index COMP, -2.43% lost 178.61 points, or 2.4%, to end at 7,166.68. The Russell 2000 index RUT, -2.24% of small-capitalization shares fell 2.1%.
For all four, the decline marked the biggest one-day drop since Feb. 8.
The day’s losses were broad, with 10 of the 11 S&P 500 sectors down on the day. Eight of the 11 fell more than 1%, with financials emerging as the weakest sector of the day. The industry dropped 3.7% and fell to a six-week low. Industrial stocks, which are seen as most sensitive to trade policy, lost 3.3%. The only positive industry group of the day was utilities, which ended up 0.4%. The group is seen as a defensive sector that outperforms in periods of economic uncertainty.
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