After long losing streak, U.S. stocks surge on solid earnings

USA stocks tumbled Friday as a technology rout rattled markets around the world, days after concerns about rising rates and the prospect of slowing global economic growth had wiped out Wall Street's gains for the year.

Longtime market favorites like Amazon and Alphabet, Google's parent company, led the way lower after reporting weak results.

The Dow Jones Industrial Average fell 125.98 points, or 0.5 percent, to 25,191.43, the S&P 500 lost 15.19 points, or 0.55 percent, to 2,740.69 and the Nasdaq Composite dropped 31.09 points, or 0.42 percent, to 7,437.54.

USA stocks plunged again on Wednesday, confirming a correction for the Nasdaq and erasing the Dow and the S&P 500's gains for the year, as disappointing forecasts from chipmakers and weak home sales data fueled jitters about economic and profit growth.

A clutch of weak outlook on Wednesday pushed the Nasdaq into correction territory and erased the Dow and the S&P 500's gains for the year.

Declining issues outnumbered advancers for a 5.72-to-1 ratio on the NYSE and a 4.29-to-1 ratio on the Nasdaq.

A three-week slide has left the benchmark S&P 500 index on track for its worst month since February 2009, right before the stock market hit bottom following the 2008 financial crisis.

Benchmark U.S. crude lost 6 cents to $66.76 per barrel in electronic trading on the New York Mercantile Exchange.

The Nasdaq added 245 points, or 3.5 percent, to 7,354.

More news: United Kingdom says Saudi explanation of Khashoggi death not credible

The beaten-down S&P technology sector retreated another 4.4 percent.

Technology stocks and media and communications companies accounted for much of the selling.

Twitter soared 15.5 percent to $31.80 and electric auto maker Tesla jumped 9.1 percent to $314.86 after their quarterly reports, while video game maker Take-Two vaulted 8.8 percent to $120.70 after strong reviews for its latest game, "Red Dead Redemption 2".

Caterpillar tumbled 5.8 percent after the heavy-duty equipment maker maintained its 2018 earnings forecast, after having raised it in the previous two quarters.

Bond prices also rose, sapping yields, as traders sought safe-haven investments.

More reports are due later Thursday in the US, including from Google parent company Alphabet, Amazon.com, Twitter and Comcast. Netflix gave back 9.4 percent and Amazon dropped 5.9 percent. The yield on the 10-year Treasury note remained at 3.12 percent. The Chinese yuan fell to 6.9641 against the greenback, flirting with its weakest point in almost a decade.

All 11 major S&P sectors were in the red, with the defensive utilities, real estate and consumer staples indexes posting the smallest losses. Brent crude, the benchmark for global oil prices, added 0.9 percent to close at $77.62 a barrel in London.

The dollar climbed to 112.59 yen from 112.44 yen. That's higher than what many economists had been projecting and followed an even stronger 4.2 per cent rate of growth in the second quarter. Japan's Nikkei 225 index sank sharply on the open but leveled off, regaining some lost ground. The S&P discretionary index fell 3.6 per cent.

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