Global market continues to tumble Wednesday because of the intensified sell off, and oil price breaking below $28 per barrel for the first time since 2003. The Dow Jones Industrial Average decreased 373 points, or 2.33%, to 1,5642.07. The S&P 500 dropped 2.57% to 1,833.00 and the Nasdaq Composite slumped 2.82% to 4,350.86.
Investors were trying their best to move to the safety investments, such as the 10-year U.S. Treasury note which prices were increasing and yields were decreasing. The yield on the 10-year note dipped to 1.97%. Last time the yield closed at that low level was back in the middle of October. Investors pointed to the continued slump in oil prices and percolating fears about global growth have pushing stocks decline for much of the year.
“A slowdown in the emerging markets coupled with a significant decline in the commodities market...is this overriding theme that we keep seeing in the marketplace,” said Carin Pai, head of equity strategy at Fiduciary Trust Company International.
U.S. crude oil tumbled 4.15% to $27.28 per barrel, and now has slumped more than 20% this year.
A wide swatch of stock indexes around the world are now in bear market territory, or more than 20% below recent highs. Japan's stock market index Nikke 225 is now in a bear market. In Europe the Stoxx Europe 600 dipped into bear territory last week. In United States, the small-cap Russell 2000 stock index kicks off the day 23.2% below its June high, and the Dow Transportation average, another key index, is also down more than 20%.
In another rough market session overseas, Japan's Nikkei 225 index fell 3.7%, leaving it dropped more than 20% from its recent high. Hong Kong's Hang Seng index decreased 3.8%, while mainland China's Shanghai composite fell 15.
The sell-off was intense in Europe. The broad Stoxx Europe 600 index was down 2.5% but off its earlier lows. Germany's DAX index was off 2.2% and the CAC 40 in Paris was down 2.9%.