Dow Tumbles 1,175 Points, Largest Single-Day Point Loss Ever - TheStreet
Stocks tanked on Monday, Feb. 5, following a selloff last week that led Wall Street to its worst weekly performance in two years on Friday, Feb. 2.
The Dow Jones Industrial Average dropped 1,175 points, or 4.6%, in its largest single-day point drop ever. The S&P 500 declined 4.1% . The Nasdaq tumbled 3.8%. The tech-heavy Nasdaq had traded in the green earlier Monday.
The Dow dropped by as much as 1,597 points earlier in the session.
Energy giant Exxon Mobil Corp. (XOM) was the Dow's leading laggard, down nearly 5.7%, falling as oil prices in the U.S. declined 1.9% to $64.24 a barrel.
The Dow plunged 665 points, or 2.54% on Friday, the S&P 500 dropped by 2.12%, and the Nasdaq sunk 1.96% as bond yields spiked after the U.S. added 200,000 jobs to payrolls in January, above forecasts, and yearly wage gains rose at the fastest pace since the Great Recession of 2008-2009.
The decline on Friday was the sixth largest single-day point drop for the Dow in history.
The data on wages, which showed pay rising at 2.9%, the most in more than eight years, triggered a spike in U.S. Treasury bond yields amid bets that it may lead to quicker consumer price increases and more aggressive action from the Federal Reserve.
Global stocks fell on Monday, with markets in Japan recording the biggest single-day decline in more than 15 months. European shares were posting sizable losses on Monday.
Broadcom Ltd. (AVGO) made a "best and final" offer to buy Qualcomm Inc. (QCOM) on Monday for $82 a share.
Broadcom's previous offer of $70 a share consisted of $60 a share in cash and $10 a share in stock.
Qualcomm shares fell 6%, while Broadcom was down 3%.
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Well Fargo & Co. (WFC) shares fell 9% on Monday after the Federal Reserve said the bank can't grow any further until its submits a plan that proves it has beefed-up its risk management and board oversight following a 2016 "fake accounts" scandal that rocked the country's third-largest bank.
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U.S. 10-year Treasury bond yields extended their slump Monday, pushing yields to fresh four-year highs of 2.865% as they edged closer to the 3% mark pegged by many investors as the level at which equity returns would likely suffer as global pension and investment funds move cash into more attractively yielding fixed income markets. At last check, the 10-year yield was at 2.832%.