Dow Jones drops 832 points in third worst drop in history

Caution remains the key word across global markets as investors try to gauge whether the recent selloff has room to run

Here are five things to watch ahead of Thursday's USA open.

The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy.

Wall Street stocks has plunged with major indices losing more than three percent in a sell-off prompted by the sudden jump in United States interest rates.

At the closing bell, the Dow Jones Industrial Average had lost 3.1% or 830 points to finish at 25,613.35, in the biggest fall since February.

The rise in U.S. Treasury yields has been bolstered by good U.S. economic data that has reinforced expectations of multiple rate hikes over the next 12 months by the Federal Reserve.

US stocks dropped on Thursday, extending a sell-off from a day earlier, after the major indexes broke though some key technical levels as risk-appetite showed no signs of picking up.

Stocks fell Wednesday as Wall Street sweats over global growth prospects and a bond selloff.

The S&P 500 also fell 3.3 percent, marking its fifth straight decline, and the Nasdaq declined more than 4 percent, its worst percentage decline since June 2016.

The Treasury held the following auctions: three-year note at 2.989%, 10-year note at 3.225%.

So bond yields, the return an investor realizes by owning a bond, move in the opposite direction of prices.

Wednesday's rout, in which the Dow finished down more than 800 points and the tech-heavy Nasdaq lost four percent, started with worry over creeping inflation and tightening Fed policy and quickly turned into an all-out sell-off, with high-flying tech stocks taking the most serious beating.

Aphria Inc., which tumbled 3.6 per cent, was among the top decliners on the main index, after the cannabis producer said there was no investment deal in place.

Amazon ($AMZN) was the biggest loser in the sector, losing more than $56 billion in market cap on Wednesday alone. The stock fell 16.8 percent to 49 cents.

Stock futures pointed to an early decline on Wall Street Thursday as global indexes tumbled, with popular tech companies getting hit the hardest.

Globally, France's CAC 40 dropped 1 per cent and the DAX in Germany lost 0.6 per cent. Britain's FTSE 100 sank 1.3 per cent.

It will take more than a daily stock market correction to stop the Fed from hiking, said George Goncalves, managing director and head of fixed income strategy at Nomura in NY.

An ongoing conflict between Washington and Beijing weighed on large-cap industrial stocks, including Boeing (-2.5%) and Caterpillar (-1.6%).

Japan's Nikkei 225 added 0.2 per cent, South Korea's Kospi dropped 1.1 per cent and the Hang Seng in Hong Kong gained 0.1 per cent.

Netflix shares fell by 6pc and have now fallen by 12pc in the last five days.

The dollar fell to 112.59 Japanese yen from 113.05 yen late Tuesday.

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