Fernando
Elite Member
- Joined
- Nov 7, 2016
- Professional Status
- Certified Residential Appraiser
- State
- California
Dow tumbles more than 850 points and dollar slides over Greenland and tariff threats
US stocks fell sharply Tuesday afternoon as investors continued to express concern about President Donald Trump’s clash with European leaders over ownership of Greenland.The Dow was down 861 points, or 1.74%, in early afternoon trading. The broader S&P 500 fell 1.96%. The tech-heavy Nasdaq Composite slid 2.2%. The S&P and Nasdaq wiped out their gains for this year.
The S&P and Dow were set for their worst day since October. The Nasdaq was set for its worst day since November.
The VIX index, commonly known as the fear gauge, surged 28% and rose above 20 — a level that signals elevated volatility — for the first time since November.
Investors resumed the so-called “Sell America” trade, selling off the US dollar and bonds. The dollar index, which measures the dollar’s strength against six major currencies, fell 0.9% — a huge move in currency markets. The dollar index was set for its worst day since August.
The benchmark 10-year US Treasury yield, which trades in opposite direction to prices, rose to 4.28%. The 30-year Treasury yield jumped to 4.91%. Both yields hit their highest level since September.
A snap election in Japan also rattled markets in Asia, sending Japanese bond yields surging higher due to nerves about Prime Minister Sanae Takaichi’s proposal to temporarily cut taxes on food despite the government’s enormous debt load. The surge in yields in Japan is adding to bond market jitters.
EXPECT MORTGAGE RATES TO RISE.

