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Wall Street ended down sharply on Wednesday ( Thursday morning GMT ) , amid fears of turbulence in emerging markets , a steep decline after the U.S. Federal Reserve to cut back monetary stimulus for the second month in a row .
The Dow Jones Industrial Average plunged 189.77 points ( 1.19 percent) to 15738.79 , AFP reported .
The broad-based S & P 500 fell 18.30 points ( 1.02 percent) to 1774.20 , while the tech -heavy Nasdaq composite index decreased 46.53 points ( 1.14 percent) to 4051.43 .
Michael James , managing director of stock trading at Wedbush Securities , said the doubling of the central bank's benchmark interest rate fears Turkey brings investors " to another level " , prompting a retreat from stocks and other risky assets .
A similar move in South Africa also failed to stem the erosion of its currency .
European stocks slumped after U.S. stocks opened in the red and fell further after the Fed announced that it would reduce further asset purchases by 10 billion U.S. dollars in February to 65 billion U.S. dollars , the decision had been widely expected .
"People are nervous, especially because of the uncertainty in the economic prospects of developing countries , " said Peter Cardillo , chief market economist at Rockwell Global Capital .
He said the Fed's move , as well as a number of earnings reports varied , are the factors that are smaller in selling .
Dow component Boeing , sank 5.3 percent after projecting flat earnings in 2014 due to a moderate increase in commercial aircraft deliveries and lower revenues from the U.S. department of defense orders .
AT & T fell 1.2 percent on fears that the outlook for the company's cash flow has been cut . Morgan Stanley assess the company's high payments to shareholders a " broad concerns . "
Citigroup , which has a relatively large presence in emerging markets , fell 3.1 percent on concerns about the outlook in these countries . JPMorgan Chase and Bank of America each lost 0.4 percent and 0.3 percent .
Yahoo fell 8.7 percent after reporting a decline of six percent during the fourth quarter display advertising revenue that has long been at the core of Yahoo's revenue .
Dow Chemical rose 3.9 percent after its earnings of 65 cents per share beat the 43 cents expected by analysts . The company announced a 15 percent dividend increase and expansion of the share repurchase program of 1.5 billion dollars to 4.5 billion dollars .
Bond prices rose sharply . The yield on U.S. 10-year bond fell to 2.68 percent from 2.75 percent on Tuesday , while the 30 - year fell to 3.62 percent from 3.67 percent . Prices and bond yields move inversely .
Wall Street ended down sharply on Wednesday ( Thursday morning GMT ) , amid fears of turbulence in emerging markets , a steep decline after the U.S. Federal Reserve to cut back monetary stimulus for the second month in a row .
The Dow Jones Industrial Average plunged 189.77 points ( 1.19 percent) to 15738.79 , AFP reported .
The broad-based S & P 500 fell 18.30 points ( 1.02 percent) to 1774.20 , while the tech -heavy Nasdaq composite index decreased 46.53 points ( 1.14 percent) to 4051.43 .
Michael James , managing director of stock trading at Wedbush Securities , said the doubling of the central bank's benchmark interest rate fears Turkey brings investors " to another level " , prompting a retreat from stocks and other risky assets .
A similar move in South Africa also failed to stem the erosion of its currency .
European stocks slumped after U.S. stocks opened in the red and fell further after the Fed announced that it would reduce further asset purchases by 10 billion U.S. dollars in February to 65 billion U.S. dollars , the decision had been widely expected .
"People are nervous, especially because of the uncertainty in the economic prospects of developing countries , " said Peter Cardillo , chief market economist at Rockwell Global Capital .
He said the Fed's move , as well as a number of earnings reports varied , are the factors that are smaller in selling .
Dow component Boeing , sank 5.3 percent after projecting flat earnings in 2014 due to a moderate increase in commercial aircraft deliveries and lower revenues from the U.S. department of defense orders .
AT & T fell 1.2 percent on fears that the outlook for the company's cash flow has been cut . Morgan Stanley assess the company's high payments to shareholders a " broad concerns . "
Citigroup , which has a relatively large presence in emerging markets , fell 3.1 percent on concerns about the outlook in these countries . JPMorgan Chase and Bank of America each lost 0.4 percent and 0.3 percent .
Yahoo fell 8.7 percent after reporting a decline of six percent during the fourth quarter display advertising revenue that has long been at the core of Yahoo's revenue .
Dow Chemical rose 3.9 percent after its earnings of 65 cents per share beat the 43 cents expected by analysts . The company announced a 15 percent dividend increase and expansion of the share repurchase program of 1.5 billion dollars to 4.5 billion dollars .
Bond prices rose sharply . The yield on U.S. 10-year bond fell to 2.68 percent from 2.75 percent on Tuesday , while the 30 - year fell to 3.62 percent from 3.67 percent . Prices and bond yields move inversely .
Major stock markets of Europe closed down on Wednesday , with the benchmark FTSE 100 index in London ended the day 0.43 percent lower at 6544.28 points .
In Frankfurt the DAX 30 dropped 0.75 per cent to 9336.73 points and in Paris the CAC 40 dropped 0.68 percent to 4156.98 points , AFP reported .
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