Wednesday, October 10, 2018, The U.S. stock market were in chaos as the Dow Jones Industrial Average fell 831.83 points, or 2.2%, to 25,598.74. The S&P 500 lost 94.66 points, or 3.29%, to 2,785.68 and the Nasdaq Composite dropped 315.97 points, or 4.08%, to 7,422.05.
The investors started to turn to Treasury market for a less risky investment. The yield on the benchmark two-year note hit 2.906% in early trading, its highest level since June 25, 2008. The yield on the benchmark 10-year Treasury note was slightly higher at around 3.189% at 4:20 p.m. ET, while the yield on the 30-year Treasury bond was up at 3.375%.
Despite higher bond yield, it also raised the stakes for U.S. inflation figures due later on Thursday as a high outcome would only stoke speculation of more aggressive rate hikes from the Federal Reserve, which sent fear to all investors, and led to the selloff.
Seeing what had happened to the U.S. stock market overnight, Asian markets are also taking the hit. At 9:00 A.M., NIKKEI lost 812.90 points or 3.46%, SSEC plunged 72.72 points or 2.67%, HSI fell 775.46 points or 2.96%, ASX skidded 108.60 points or 1.80% and KOSPI sank 62.77 points or 2.82%
SET dropped 43 points or 2.52% at the opening bell, sinking to 1,678.36 points.