Dow drops below 11,000 as dollar rebounds
NEW YORK — A stronger dollar and a surprise interest rate hike in China that may slow that country’s economy helped push stocks sharply lower Tuesday.
The Dow Jones industrial average fell below 11,000 for the first time in a little more than a week, reversing a streak that had pushed the index up nearly 7 percent for the year. It was the largest single-day drop in the market since early August.
Bank of America Corp.’s 4.4 percent drop was the largest fall in the Dow and came amid reports that a group of investors including BlackRock Inc. and Pacific Investment Management Co. are reportedly attempting to force the bank to repurchase mortgages put out by Countrywide Financial Corp., which Bank of America bought in 2008. BlackRock and Pimco declined to comment.
The broader stock market fell following an announcement that China, whose rapid growth has helped pull the global economy along, raised a key interest rate to fight inflation. That pushed the shares of U.S. companies down, many of which consider China an important market.
The Dow Jones industrial average fell 165.07, or 1.5 percent, to 10,978.62. Standard & Poor’s 500 index fell 18.81, or 1.6 percent, to 1,165.90, while the Nasdaq composite index fell 43.71, or 1.8 percent, to 2,436.95.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Oxford’s FNC getting new headquarters
- QUIRKY? NO, JERKY — Whatever your craving, Beef Jerky Outlets likely has the flavor among 200+ choices
- Officials set hunting dates for birds; expands dove season by 20 days
- TECH 21 — Mississippi's most wanted in technology
- ALAN TURNER — The ‘Internet of things’ is focus of Camgian's Gary Butler
- MARTIN WILLOUGHBY — State roots key to Edge Theory's Joe Stradinger
- Federal charges dropped against Shumate after guilty plea
- Cochran's attorneys argue for dismissal of McDaniel's lawsuit
- MEMA warns of hottest temperatures of the year