The worst day of the year for main US benchmark indexes was recorded yesterday. One day after Feds Chairman Ben Bernanke confirmed investors surmise that government bond buying program is going to start reducing stimulus till the end of the year.
The Dow Jones Industrial average lost 353 points, or 2.3%. The decline was the biggest one-day point drop since November 2011. Including Wednesdays losses, the Dow Jones plunged more than 550 points in two days.
The S&P 500 index dropped by 2.5% which is also two year lowest. The benchmark index tumbled 3.9 percent over two days. All 10 sectors in the S&P 500 suffered at least 2.2 percent, consumer, utility and energy shares led losses. Newmont Mining Corp. sank 6.7 percent as gold lost the sensational $71 for just one day. An index of home-builders fell the most in a year, as construction companies struggled.
Both indexes are still up between 11% and 12% for the year.The Fed has been a major driver of the bull market, and traders expect the tapering would provoke volatility on the market.
In corporate news, Orcale plunged 9.5% after the close of NYSE as the company reported a revenue missing estimates as sales were slowing.
GameStop Corp. surged 6.3% to $40.94, its highest level since September 2008 after Microsoft Corp. surprisingly shifted its strategy and removed restrictions of resselling and renting Xbox One games. GameStop is vastly relying on pre-own games services which consist of more than 30% of companys revenue.
Sprint Nextel Corp. raised by 1% to $7.07. The wireless carrier raised its bid to acquire 50% of Clearwire Corp. The proposal of $5 a share topped an offer from Dish Network Corp. by 14 percent.
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