Home / Finance News / Dow Jones SURGES by 300 points after dropping nearly 1,400 points in TWO DAYS | City & Business | Finance

Dow Jones SURGES by 300 points after dropping nearly 1,400 points in TWO DAYS | City & Business | Finance

The US stock index has seen staggering losses this week off the back of investor concerns about rapidly rising interest rates and an expected slowdown in global economic growth.

As of 15:12 GMT, the Dow Jones Industrial Average was trading at 25,392.60, or +339 points.

This had dropped slightly at 15:57 GMT to 25,350.27, or +297 points.

The rebound this afternoon comes after the DJIA closed down 545 points, after losing 836 points the night before.

The mood was positive across the board this afternoon at the open, with the S&P 500 gaining 1.5 percent and the tech sector outperforming by 2.5 percent.

Netflix soared 5.1 percent higher, while Amazon and Apple gained 4.4 percent and 3 percent.

Facebook shares climbed by 1.4 percent and Alphabet saw an increase of 2.5 percent.

Investors have been keeping a sharp eye on rising interest rates after The Federal Reserve revealed a hike, sparking nerves a trade war would slash profits.

President Trump described the Fed as having “gone crazy” after walking off Air Force One in Erie, Pennsylvania for a rally.

Mr Trump said: ”I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy.

“Actually, it’s a correction that we’ve been waiting for for a long time, but I really disagree with what the Fed is doing.”

The International Monetary Fund downgraded its predictions for global growth this week, and is now forecasting 3.7 percent global growth in both 2018 and 2019.

This is down from its July forecast of 3.9 percent growth for both years.

Maurice Obstfeld, the IMF’s chief economist, pointed part of the blame to growing tensions between the US and China, who are currently locked in an increasingly bitter trade war.

Mr Obstfeld said at a media briefing about the fund’s latest World Economic Outlook: “When you have the world’s two largest economies at odds, that’s a situation where everyone suffers.”

He continued: ”Trade policy reflects politics and politics remain unsettled in several countries, posing further risks.”

Investors have also been keeping their eyes on rising US Treasury yields.

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