Why did the stock market drop? Here are all the reasons for the Dow plunge

Why did the stock market drop? Here are all the reasons for the Dow plunge

, USA TODAYPublished 6:34 p.m. ET Oct. 10, 2018 | Updated 7:58 a.m. ET Oct. 11, 2018

It sure felt like a sell-everything day on Wall Street Wednesday: Stock prices plunged, and talk of a panic and comeuppance for the nearly 10-year old bull market took hold.
So why did stock prices fall so far, so fast, seemingly out of nowhere? And what explains the 832-point drop for the Dow Jones industrial average just a week after the blue-chip stock gauge notched a record high?
While there's never a perfect answer to explain how market psychology can turn on a dime, here's how financial pros are making sense of the worst day for the Dow since February, and a big decline in popular technology stocks.

What sparked the fall?

Nervousness had been building for days on Wall Street. The catalyst was the recent spike in the yield on a closely watched government bond to a seven-year high.
The 10-year Treasury note -- whose key rate impacts the pricing on things ranging from fixed-rate mortgages to stocks to virtually every financial asset on the planet -- recently climbed above 3.25 percent for the first time since May 2011. And when you add the threat of higher borrowing costs on things like houses and cars and corporate debt to the economic obstacles caused by the U.S. trade war with China, all it takes is a whiff of weakness to set a major sell-off in motion.
Continue reading this article: https://www.usatoday.com/story/money/2018/10/10/why-stock-market-went-down-so-much/1593803002/

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