August 29, 2014
Wall Street slides on emerging market jitters
US stocks fell today, along with markets around the world, on concerns that bold efforts by Turkey and South Africa to stabilize their currencies may not be enough to staunch a cycle of selling in emerging markets.
The benchmark S&P 500 has lost ground during four of the past five sessions, amid fears over slowing growth in China and large capital outflows from developing markets as investors sought safe-haven assets.
The Dow Jones industrial average closed down 189.77 points, or 1.19 percent, to 15,738.79. The S&P 500 lost 18.3 points, or 1.02 percent, to 1,774.2, and the Nasdaq Composite dropped 46.529 points, or 1.14 percent, to 4,051.434.
European shares fell to six-week lows, meanwhile, breaking below technical support levels in the face of weak earnings and concerns that another trimming of US monetary stimulus may exacerbate the emerging markets rout.
Emerging economies - key revenue sources for Europe's car makers, fund managers and other companies - have been hit by financial market turbulence in recent days, triggered by regional problems and by the prospect of another $10 billion cut in the US Federal Reserve's bond purchases.
The pan-regional FTSEurofirst 300 index fell 0.72 percent at 1,288.73.
The EuroSTOXX 50 closed down 0.9 percent at 3,011.45 point, its lowest finish since mid-December.
In Asia, Japan's Nikkei share average jumped 2.7 percent, its biggest gain in almost five months, after Turkey's huge hike in interest rates halted selling in emerging markets and bolstered risk appetite.
The Nikkei rose to 15,383.91, moving away from a 2-1/2 month low just below 15,000 set on Monday and snapping a four-session losing streak.