Blue-chip giants, General Electric, Microsoft, and McDonald’s ignited the panic selling on Wall Street after all three reported earnings that missed analyst estimates. It was the worst one day drop on the Street since June, with the falls wiping out nearly all of the week’s earlier gains.
The Dow tumbled 205 points (-1.5%), with the S&P500 (-1.7%) and Nasdaq (-2.2%) faring worse. There wasn’t even anything on the economic front to cheer investors, with US existing home sales declining in September.
Commodities weren’t spared from the blood bath. Gold and copper were both hit hard by a resurgent US dollar, which was well supported by safe-haven demand.
Elsewhere, crude slid two percent as the weak economic and earnings data overshadowed reports a key oil pipeline in the US has been temporarily shut, potentially choking of supply to the nation’s Midwest.
The Aussie dollar was pressured by sliding commodities, whilst the euro declined after the latest EU summit failed to make any progress on Spain’s problems. There is no major economic data due out today.