Dow industrials sink 831 points as tech companies plunge

Dow falls 500 points as rising Treasury yields drag down market

The New York Stock Exchange

Bets on market calm, measured by the number of contracts shorting futures for the CBOE Market Volatility Index compared to long contracts, are at a higher level than before the market correction, according to data from the U.S. Commodity Futures Trading Commission.

USA airlines were another big loser, with American Airlines sliding 4.1% and Southwest Airlines 3.8% as a major U.S. hurricane caused flight cancellations in Florida.

USA stocks are falling again a day after their biggest drop since February.

Alibaba dropped 4.1 percent after Morgan Stanley and Raymond James cut their near-term profit estimates on the Chinese e-commerce company, citing a softer economic environment in China.

Luxury retailers tumbled. Tiffany plunged 10.2 percent to $110.38 and Ralph Lauren fell 8.4 percent to $116.96.

The weakness in tech was led by semiconductor names after Swiss vacuum valve maker VAT Group said demand from chip equipment makers was softening. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.

Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said the stocks have become more volatile in the last few months because investors have concerns about their future profitability.

Steep falls in US shares on Wednesday rolled into Asia and Europe on Thursday.

All top ten cryptocurrencies and stocks from Dow Jones, S&P 500 and Nasdaq, are in the red on Thursday. Think of it this way, if the Treasury issues a $1000 bond paying 3 percent interest, investors will not pay $1000 for an older bond paying 2 percent interest. The stock fell 16.8 percent to 49 cents.

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"The indications we look at lead us to conclude this is likely to be yet another brief pullback in the context of a 9.5-year bull market with another 3-5 years left to go", Reynolds said in a note.

Sears Holdings nosedived after the Wall Street Journal reported that the struggling retailer hired an advisory firm to prepare a bankruptcy filing that could come within days.

USA crude fell 1.98 per cent to $71.72 per barrel and Brent was last at $81.30, down 2.15 per cent on the day.

Wholesale gasoline shed 2.7 per cent to $2.02 a gallon.

The dollar index fell 0.17 percent, with the euro up 0.25 percent to $1.1518.

The communication services sector also rose 0.49 percent on Thursday, with Facebook and Alphabet both rising 1.4 percent. Copper fell 0.9 per cent to $2.78 a pound.

Gold rose 0.2 per cent to $1,193.40 an ounce.

The CAC 40 in France dropped 2.1 per cent, Germany's DAX lost 2.2 per cent and the FTSE 100 in London fell 1.3 per cent.

Every one of the 11 S&P 500 sectors finished down for the day. Brazil's Bovespa lost 2.5 percent and the Merval in Argentina sank 2.2 percent.

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