Wall Street crumbles again as stocks erode in fear

• December 18 2018
• http://www.jamaicaobserver.com/news/wall-street-crumbles-again-as-stocks-erode-in-fear_152459

New York , United States (AFP) — Wall Street crumbled again on Monday while other global stocks mostly fell, as a wave of bad feeling about economic growth swept over investors.

US President Donald Trump lambasted the Federal Reserve again, calling on the central bank not to raise interest rates a day before policymakers are due to meet. Markets widely expect the Fed to ignore the political pressure and announce its fourth rate hike of 2018.

With a volatile year drawing to a close, major US stock indices touched new lows while one fell into a “bear market” — a potentially ominous moment when prices fall 20 per cent from a recent peak.

Prominent US investor Jeffrey Gundlach touched off more bloodletting around midday after telling CNBC US equities probably were already in bear market territory.

The Dow Jones Industrial Average and S&P 500 both fell 2.1 per cent while the tech-heavy Nasdaq fell 2.3 per cent, with the latter two hitting new lows for the year.

The Nasdaq is now 16.7 per cent below its August peak, inching toward a bear market as well.

Quincy Krosby of Prudential Financial told AFP the S&P 500 was approaching key technical levels that could trigger automated selling.