Dow Plummets More Than 800 Points

  • Oct 11, 2018 AEDT
  • Team Kalkine
Dow Plummets More Than 800 Points

Probably the third worst decline in the history in terms of points, when Dow plunged nearly 832 points on Wednesday, as at Oct 10, 2018. Sending the index below 26,000 points for the first time in a month, while all 30 stocks were in red, the index fell by more than 3%. While S&P 500 dropped nearly 3% posting its fifth straight decline. Since June 2016, in the worst percentage decline the Nasdaq dropped more than 4%.

The Nikkei was down more than 3%, following the downtrend in the international markets, in morning trading as at Oct 11, 2018. Sliding sharply because investors are worried about rising interest rates, stocks are in the center of an October slump. A nerve-racking month for investors, October has often been living up to this reputation. All three indexes are down where Nasdaq has plunged nearly 8% already in October. When the index was down by more than 1,000 twice Dow's point decline was the worst since February 2018. Although it does not beat the top declines the index fell 23% in 1914 and on Black Monday in 1987. 

The Technology Select Sector SPDR Fund plunged 4.85% which is a proxy for the technology, has not happened since Aug 2011. Let’s see why?

Bond yields have climbed in recent weeks, soaring at a more-than-seven-year high, which is why the tech stocks are taking a hit. As the Federal Reserve seems intent on raising short-term rates for the probable future, higher long-term rates could slow down red-hot sectors of the economy, including technology. Affecting corporate profits, higher rates increase borrowing costs.

Companies that aren't as expensive and also pay healthy, stable dividends, investors may want to shift out of momentum and enter into more defensive stocks. Especially as trade tension with the United States has escalated, continued worries about a slowdown in China's economy, were also dragging down the broader market.

The likes of Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX) tech leaders all helped lead the market lower, while food companies Smucker (NASDAQ: SJM), gold miner Newmont (NASDAQ: NEM), General Mills (NASDAQ: GIS), and bargain retailers Dollar General (NASDAQ: DG), and Dollar Tree (NASDAQ: DLTR) finished the day higher among the food companies.

With earnings due from big banks on Friday, to take the lead from tech stocks, investors will look for new market sectors. If the Fed keeps raising interest rates and bond yields climb higher, banks should do better, since it will make their loans more profitable, but this is only in theory and reality may differ. Out of 505, only 17 stocks in the S&P 500 wound up with a gain, even utility stocks, fell slightly Wednesday, which tend to pay big dividends. CBOE Volatility Index, or VIX often called Wall Street's gauge for fear, surged nearly 40%.

This market lag will wind up being a healthy dip as long as earnings and the US economy are continuing to grow as this slide was long overdue.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK