This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-31818958
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
US stocks lose all gains made in 2015 | |
(about 7 hours later) | |
(Close): Shares in the US fell sharply on Tuesday, as investors fretted that the Federal Reserve could raise interest rates earlier than expected. | |
A strengthening dollar, which could hurt US exports, also hurt markets. | |
The Dow Jones fell 332.78 points, or 1.85%, to 17,662.94, while the broader S&P 500 dipped 35.26 points, or 1.7%, to 2044.17. Both indexes erased all the gains made so far in 2015. | |
The tech-focused Nasdaq shed 82.64 points, or 1.67%, to 4,859.79. | |
The US dollar continued strengthening, rising 1.4% to 12-year highs against the euro. | |
The strength of the dollar has worried some investors, because it could hurt the profits of US firms which do business abroad, as their overseas earnings are worth less when converted from foreign currencies. | |
A strong dollar also makes it harder for US firms to compete with rival firms in other countries, which may be able to offer products more cheaply. | |
Meanwhile, the looming prospect of an interest rate rise by the Federal Reserve is bad news for some firms, which have benefited from being able to borrow very cheaply as a result of record-low rates. | |
The falls in US shares echoed earlier falls on European indexes. | |
In London, the FTSE 100 recorded the biggest one-day fall of the year, closing 2.5% lower at 6,702, while Paris' Cac-40 and Frankfurt's Dax also ended the day in negative territory. | |
One bright spot in the US corporate landscape was clothing retailer Urban Outfitters. Shares in the firm rose by almost 12% after it reported better-than-expected fourth quarter results on Monday. | |
The retailer - which appeals mostly to younger shoppers - said same-store sales rose by 6% compared to a year earlier, and net income was $80m for the three month period ending 31 January 2015. | The retailer - which appeals mostly to younger shoppers - said same-store sales rose by 6% compared to a year earlier, and net income was $80m for the three month period ending 31 January 2015. |