World shares plummeted on Tuesday with the Dow and the S&P 500 indexes marking the biggest loss seen on Wall Street in about five months.
Wall Street pulled back from its Monday record highs with S&P futures shaving off 0.4 percent to 2,843.60 and Dow futures shed 0.6 percent to 26,280.00.
The French market index, CAC 40, fell 0.3 percent to 5.506.27, Germany’s DAX shed 0.4 percent to 13,271.33. In Britain, the FTSE 100 lost 0.4 percent to 7,642.05.
After rising to an all-time high on Monday, Asia-Pacific shares quickly reverted to low marks. Japan’s Nikkei 225 index shed 1.4 percent to 23,291.97 and Hong Kong’s Hang Seng fell 1.1 percent to 32,607.29.
The South Korean Kospi index dropped 1.2 percent to 2,567.74 while the Shanghai Composite index lost 0.8 percent to 3,488.01.
Australian stocks shed 0.9 percent to 6,022.80 and India’s Sensex gave up 0.7 percent to 36,033.55.
The Standard & Poor’s 500 index lost 0.7 percent to 2,853.53 and the Dow Jones industrial average suffered a 0.7 loss to 26,439.48.
The Nasdaq composite index shed 0.5 percent to 7,466.51 while the Russell 2000 index of company stocks belonging to smaller companies shed 0.6 percent to 1,598.11.
While the losers outnumbered the gainers five-to-one, the dollar managed to power through thanks to its newfound support from higher US bond yields.
The dollar index was 0.15 higher at 89.457, shedding its three-year bad luck.
US crude oil shaved off 66 cents to $64.90 a barrel in after-hours trading on the New York Mercantile Exchange, while on Monday it lost only 58 percent.
The main star of the economic stage, however, will be president Trump’s first State of the Union address scheduled for Tuesday as well as a two-day meeting of the Federal Reserve’s policymaking committee that will end on Wednesday.
“This is one of the few prepared speeches that the president will give, so the progress of NAFTA and trade with China is something the market is going to watch carefully,” notes Mike Baele, a senior portfolio manager at US Bank Private Wealth Management.
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