Wall Street has biggest losses in six months

Dow Jones: 11,823.70 (-166.13) S&P 500: 1,276.34 (-23.20) Nasdaq: 2,686.89 (-68.39)STOCKS SUFFERED their biggest one-day loss in nearly six months yesterday as anti-government rioting in Egypt prompted investors to flee to less risky assets to ride out the turmoil.&

Increased instability in the Middle East drove the CBOE Volatility Index, the stock market’s fear gauge, more than 23 per cent higher as investors scrambled for protective positions. Trading volume was the highest of the year at 9.97 billion shares on the New York Stock Exchange, the American Stock Exchange and Nasdaq.

The market drop ended the Dows eight-week winning streak and pushed the S&P 500 below its 14-day moving average for the first time in two months. Disappointing results from Amazon and Ford further added to the gloom.

Developments in the Middle East could be a trigger for investors to sell at a time when many expected a correction after a market rally of about 18 per cent since September.

Nasdaq quotations for its main stock indexes suffered an outage of nearly one hour at the open, causing confusion among traders. Nasdaq OMX Group blamed a glitch with its global index data service.

The Dow Jones industrial average ended down 166.13 points, or 1.39 per cent, at 11,823.70. The Standard Poor’s 500 Index was down 23.20 points, or 1.79 per cent, at 1,276.34. The Nasdaq Composite Index fell 68.39 points, or 2.48 per cent, at 2,686.89.

Amazon shares slipped 7.2 per cent to $171.14, a day after the online retailer recorded revenue below the consensus view.

Ford slumped 13.4 per cent to $16.27 after a steep drop in quarterly profit. Rival carmaker General Motors also lost 5.4 per cent to $36.60.

Dow component Microsoft also fell 3.9 percent to $27.75 a day after its profit dipped.

US crude futures rose 4.4 per cent to $89.43 a barrel as the protests in Egypt threatened Middle East stability. Oil companies with operations in the region were hit, including Apache and Occidental Petroleum. Apache shares were down 1.3 per cent at $144.84 and Occidental Petroleum fell 3.3 per cent to $93.81.

Equities garnered support from data showing the US economy grew by 3.2 per cent in the fourth quarter as consumer spending accelerated. – (Reuters)