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Stocks suffer worst setback in five weeks, as global tensions rise

  • Stocks took a pounding, driven by worries about China’s slowing economy and rising tensions in Ukraine, sending the Dow, S&P and Nasdaq to their biggest one-day drops since Feb. 3.
  • A report that Russian forces were mobilizing military forces near the Ukrainian border appeared to trigger the downhill slide in the averages, which already were giving back early gains.
  • China reported data overnight that indicated a slowdown in the pace of its economic growth, and a report today said increasing concerns about the financial health of bloated industries have caused Chinese banks to cut lending by as much as 20%.
  • Markets also may have been unnerved by comments from Stanley Fischer, Pres. Obama's choice for the no. 2 post at the Fed, that the central bank is doing all it can to help the economy, even as it slows down its asset purchases.
  • Techs and industrials took the worst shellacking, while utility stocks were the only S&P sector to post gains.
  • Treasury prices surged amid the risk-averse atmosphere, with the 10-year yield falling 8 bps to 2.647% despite rising in morning trade.
Comments (3)
  • Tempo Dulu
    , contributor
    Comments (320) | Send Message
     
    global tensions rise? Hardly, Ukraine is an insignificant place and China's problems are well documented.
    13 Mar, 11:30 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
     
    Don't worry, the Federal Reserve will sweet talk the market yet once again to try to say it's ok to take more risk than you should and borrow. Never in American history has the market been do dependent on a quasi-government agency to dictate America's future and what we should do economically than today. You would think that the USA is too stupid to make rational decisions themselves.

     

    Certain if you listen and follow every pronouncement they make you probably are too stupid. That or you are on their free money banker's dole (remember according to the Federal Reserve they aren't giving banks money just liquidity that allows them buy whatever they want).
    13 Mar, 11:46 PM Reply Like
  • Oak_Tree
    , contributor
    Comments (23) | Send Message
     
    The strong unemployment number on Thursday could have been seen as a precipitator to an imminent Fed rate hike. Equities don't like that (initially), the surge in bond prices reflected the flight to safety from rich valuations. Using the KISS rule.
    14 Mar, 12:49 AM Reply Like
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