US stocks plunged yesterday, driving the Dow Jones to its lowest close for more than 10 months, as data showing US economic growth rocketing ahead added to expectations that interest rates are headed sharply upwards.
The Dow Jones dropped 230.51 points, or 2.28 per cent, to 9,862.12, its lowest finish since April 1999. It last closed below 10,000 points on April 6th and has now dropped 14.22 per cent so far this year.
The Nasdaq composite index, which had seesawed all session, slipped 27.16 points, or 0.59 per cent, to 4,590.49, having earlier touched an intra-day high of 4,662.93. The Standard & Poor 500 finished down 20.07 points, or 1.48 per cent, at 1,333.36.
Analysts said they were nervous that the Dow's close below the psychologically important 10,000 level could signal market weakness ahead.
"The stock market more and more is waking up to the realisation that two more interest rate hikes and perhaps three" are being factored in, said David Sowerby, market strategist at Loomis Sayles in Detroit.
