2014.08.0105:50:09UTC+00US stocks plummet, Dow, S&P dive

It has been a tough trading day for the US stocks as it’s major stocks plummet on concerns that the Fed will raise interest rates sooner than expected, weaker corporate earnings, and possible waning in the European economy.

The Dow Industrial Average erased all gains for 2014 as it dived into the red with a 1.9% decline or 317.06 points to 16,563.30. The Dow had previously performed well as it passed the 17,000 mark, however, following the overnight global equities sell off, the gauge plummeted with all of its 30 components declining as led by Exxon Mobil. The S&P 500 is also in the red with all ten of its industry groups dropping. The gauge lost 2% or 39.40 pips to 1,930.67 led by slumps from the energy and telecommunication shares. This is the most the index has lost since April. The Nasdaq Composite sank by 2.1% or 93.13 points to 4,369.77. The MSCI All-Country World Index shed 1.5%, the biggest loss for the index in six months. The investor’s fear gauge or the CBOE Volatility Index surged by 27% to 16.95.

Exxon Mobil, Murphy Oil Corp., Micron, Samsung Electronics Co., Nike Inc., Adidas AG, and Sprint Corp. all fell in the trading market with most of them due to disappointing corporates earnings.

Chief investment officer at Wilbanks, Smith & Thomas Asset Management LLC, Wayne Wilbanks, told Bloomberg that the Fed is giving way as the valuations of the market reach heights that are enough for people to immediately take profit. Wilbanks adds that the market should anticipate “more days like today” where investors are “trigger happy” and are enjoying liquidation. Wilbanks says, “Everybody knows a correction is coming and it will come.”