Dow drops more than 250 points on fears about rising rates, slowing China economy

[Algernon Moncrieff]

CNBC

The Dow Jones Industrial Average dropped 273 points, led by declined in Caterpillar and Apple. The S&P 500 fell 1.1 percent as the communications and tech sectors lagged. The Nasdaq Composite pulled back 1.6 percent. Overseas, the Shanghai Composite dropped fell sharply.

The short-term two-year yield hit its highest level since June 2008 before slipping. The benchmark 10-year note yield climbed to 3.205 percent.

Housing stocks fell as rates rose. The iShares U.S. Home Construction ETF (ITB) dropped 0.9 percent. They also fell after Bank of America Merrill Lynch downgraded shares of Toll Brothers and PulteGroup, along with NVR, as it reduced its forecast for housing starts.

The rise in bond yields come a day after the Federal Reserve released the minutes from its September meeting. The minutes showed the central bank is still convinced tighter monetary policy is the best course of action for the economy to remain steady.

[Johonny]

1. I imagine the 5% across the board federal budget cut isn't exciting wall street either

[Algernon Moncrieff]

2. I have to be real: we are not even in correction territory yet.

But a storm is coming. A 2008 level storm? I dont think so. But, in essence, Trump passed a stimulus package and it has mostly resulted in corporations buying back stock.

I'd have much rather put that level of investment into clean renewable energy.