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| Wall St. Tumbles, Bothered by the Fed and Government Shutdown Fears | Wall St. Tumbles, Bothered by the Fed and Government Shutdown Fears |
| (about 7 hours later) | |
| Stocks tumbled yet again on Thursday, a day after the Federal Reserve pushed forward with another interest-rate increase and offered few signs that it would sharply slow the pace of monetary tightening as many had hoped. | Stocks tumbled yet again on Thursday, a day after the Federal Reserve pushed forward with another interest-rate increase and offered few signs that it would sharply slow the pace of monetary tightening as many had hoped. |
| The S&P 500-stock index declined 1.6 percent, and the Dow Jones industrial index fell 2 percent. The tech-heavy Nasdaq composite fell 1.6 percent, pushing it 19.5 percent below its late-August peak. A decline of 20 percent marks the start of a bear market. | |
| On its own, the broader S&P 500 is down more than 15 percent from its peak, close to entering a bear market and ending the long bull rally that began in early 2009. | |
| “There’s just a constant selling pressure,” said Paul Hickey, a founder of the Bespoke Investment Group, a financial market research firm in Harrison, N.Y. “It’s just any excuse is an excuse to sell.” | “There’s just a constant selling pressure,” said Paul Hickey, a founder of the Bespoke Investment Group, a financial market research firm in Harrison, N.Y. “It’s just any excuse is an excuse to sell.” |
| On Thursday, investors had their pick of excuses. | On Thursday, investors had their pick of excuses. |
| Tensions between the United States and China flared as the Justice Department unveiled new indictments of Chinese nationals accused of hacking government and corporate targets on behalf of Chinese intelligence agencies. | Tensions between the United States and China flared as the Justice Department unveiled new indictments of Chinese nationals accused of hacking government and corporate targets on behalf of Chinese intelligence agencies. |
| Shares of technology companies, increasingly the epicenter of the confrontation between China and the United States over trade, security and technology, fell sharply. Apple, Amazon and Microsoft were all down more than 2 percent. | Shares of technology companies, increasingly the epicenter of the confrontation between China and the United States over trade, security and technology, fell sharply. Apple, Amazon and Microsoft were all down more than 2 percent. |
| Elsewhere, President Trump again raised the specter of a federal government shutdown if he didn’t receive funding for his promised border wall. | Elsewhere, President Trump again raised the specter of a federal government shutdown if he didn’t receive funding for his promised border wall. |
| And crude oil extended its slump, sending energy stocks sharply lower. The S&P energy sector led the declines in the S&P 500, with the energy giants Exxon Mobil and Chevron dropping 3.1 percent and 2.7 percent. | And crude oil extended its slump, sending energy stocks sharply lower. The S&P energy sector led the declines in the S&P 500, with the energy giants Exxon Mobil and Chevron dropping 3.1 percent and 2.7 percent. |
| American benchmark crude oil prices tumbled 4 percent more, pushing the price of a barrel of West Texas Intermediate crude to nearly $46 a barrel. | American benchmark crude oil prices tumbled 4 percent more, pushing the price of a barrel of West Texas Intermediate crude to nearly $46 a barrel. |
| Initially, the sharp slump in crude oil prices — they’re down more than 23 percent this year — was seen as a result of a global supply glut that was expected to be transitory. But as the sell-off has persisted, the decline has raised questions among investors about the strength of global demand and economic health. | Initially, the sharp slump in crude oil prices — they’re down more than 23 percent this year — was seen as a result of a global supply glut that was expected to be transitory. But as the sell-off has persisted, the decline has raised questions among investors about the strength of global demand and economic health. |
| “When prices move in a sustained way it’s telling you something about demand,” said Julia Coronado, president of MacroPolicy Perspectives, an economic consulting firm. | “When prices move in a sustained way it’s telling you something about demand,” said Julia Coronado, president of MacroPolicy Perspectives, an economic consulting firm. |
| Asian markets followed Wall Street lower in Friday morning trading, with Japan’s 1.8 percent drop leading the way. Futures markets, however, suggested Wall Street could open higher on Friday. | |
| The global economy does appear to be slowing. Official figures in China, the world’s second-largest economy, show it is growing at its slowest pace in a decade. The world’s No. 3 and 4 economies, Japan and Germany, both contracted during the third quarter. | The global economy does appear to be slowing. Official figures in China, the world’s second-largest economy, show it is growing at its slowest pace in a decade. The world’s No. 3 and 4 economies, Japan and Germany, both contracted during the third quarter. |
| At the same time, the world’s largest economy, the United States, had one of its strongest years of economic growth since 2005. That was due in part to a jolt of fiscal stimulus in the form of a deep cut to corporate tax rates. | At the same time, the world’s largest economy, the United States, had one of its strongest years of economic growth since 2005. That was due in part to a jolt of fiscal stimulus in the form of a deep cut to corporate tax rates. |
| But for financial markets, the books are already closed on 2018. And asset prices are painting a much more dour picture of the economic outlook. | |
| The S&P 500 is now down nearly 16 percent from its Sept. 20 peak, as investors have grown increasingly uncertain about the outlook for the economy and corporate profits. | The S&P 500 is now down nearly 16 percent from its Sept. 20 peak, as investors have grown increasingly uncertain about the outlook for the economy and corporate profits. |
| Many had hoped that the right mutterings from the Federal Reserve as part of Wednesday’s decision on interest rates could offer a lifeline to a market rally that began in the economic wreckage of the financial crisis in March 2009. | Many had hoped that the right mutterings from the Federal Reserve as part of Wednesday’s decision on interest rates could offer a lifeline to a market rally that began in the economic wreckage of the financial crisis in March 2009. |
| By some measures, that bull market is the longest on record, having pulled the stock market up more than 250 percent. | By some measures, that bull market is the longest on record, having pulled the stock market up more than 250 percent. |
| “Everything points to the Fed needing to stop,” said Barry Bannister, chief equity strategist at the brokerage and investment banking firm Stifel Nicolaus in Baltimore. “And until they do, it’s kind of hard to put a floor under stocks.” | “Everything points to the Fed needing to stop,” said Barry Bannister, chief equity strategist at the brokerage and investment banking firm Stifel Nicolaus in Baltimore. “And until they do, it’s kind of hard to put a floor under stocks.” |