Global Sell-Off Leaves Dow Jones 314+ Points Lighter

Dow Jones Industrial Average tumbles below the 16,000 mark on growing fears of a weakening Chinese economy.
3:00 | 01/24/14

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Transcript for Global Sell-Off Leaves Dow Jones 314+ Points Lighter
And let -- live -- -- the closing -- -- ABC news digital and ringing the -- this afternoon. In the fallout from the community options incorporated. The nonprofit. Highly -- -- five K run -- money. -- jobs housing. But today though they are up there for the country for Friday January 24 with a -- aggressive -- there and what and in. Today has been on Wall Street and when I'm -- Cutler in New York the Dow dropping fast the blue chip index fell below the 161000. Mark. As even US markets cannot ignore a global sell off. So for more on what is happening want to bring in Mike sent to -- from Yahoo! finance might we see that the Dow down better than 310 points what's going on. While obviously did start overseas right we have the emerging markets parts of Asia as well as -- Argentina Turkey all of them had -- I've been -- these fears that capital was going to be fleeing from there is a fear of a slowdown in China we got a little -- worsening of the picture there this week with some of the manufacturing data. And it seems to have kind of -- a little bit. When it comes to stock markets here. It's almost as if there was some pent up selling stocks came in 2014 and a very high -- people thinking everything was going to be all well with the global growth story. And I do think it's they provide an excuse. To have a lot of people all at once as often happens try to take profits try to reduce their risk levels and that's what we basically senior people have this sort of muscle memory. Of past emerging markets sort of meltdowns. When it kind of paid to be out of the way we don't know if this is gonna develop into something like that but that's been the concern so we're looking at international influence not necessarily a specific industry or sector that. Well not so much specifically -- industry or sector but the -- could play out in the US is. The hardest hit areas were the ones more exposed. To emerging markets turmoil such as the big banks of the financial stocks were down more than the market. And also things like Alcoa and the big. -- -- industrial global materials companies that really do rely on that that sort of commodity based growth -- a lot of emerging markets. For provide that. Well that's what that's -- -- -- away from stocks then where they start and turn their attention commodities gold other investments you know gold didn't really respond very much that link between gold and kind of safety trade especially when it comes emerging market seems to have been loosened to some degree. Really that -- beneficiary is safe US treasuries. The that the prices of US treasuries went -- people bottom. The -- the yields go down -- -- interest rates have gone down. Not just today actually before a few weeks right now. They have been trending lower so that's been the main place they've gone for -- if you will point out. That when you did have. Big US companies that had some positive news to respond to. The market was not oblivious to -- -- Starbucks for example in Microsoft stocks both up smartly today because they had. Good results so it's not as if it's been so indiscriminate that it did everything was sold off. But most things war. But let me ask this I -- I know it's very difficult obviously to project any kind of indication of what's gonna happen based on just one particular day's activities. But a sign of things to -- is -- just a one time cash and is that a correction that is -- extended period of time. At this point. The US stock indexes are down about 3% year to date basically 3% from an all time high. -- you know something on the order of 847%. Pullback would not even. Become as deep as what people call -- correction. And would be orderly logical at this point for this to develop into that it's gonna feel scaring nobody knows what it's gonna stop it's gonna be just a 4% or for that matter. With what today's close shows but I do think that we do have some pent up selling we did have some some sense that we came into the year of a lot of momentum and enthusiasm. That often has to be kind of burned off I don't really think it means some kind of a major. Downturn necessarily we've seen these scary things before nobody much remembers. You know less than a year ago we were worrying about little cypress bringing the world into -- death spiral of American markets meltdowns as well. That didn't necessarily torpedo the market but we are higher levels I think there's plenty of selling to be done if the news photos and cooperate so we have to see over the weekend overseas -- developed. And what's gonna happen man with the Fed and the and the bond buying program that spends some people's minds and attention that is that a force. It's scheduled to reconsider and the potential taper. So the Fed meets next week we're going to have you know a decision everyone expects mostly I guess at this point still for the Fed to stick to its plan. To gradually reduce. The asset buying is doing the stimulus that its performing at this point I don't really think the Fed is likely to. Kind of on a short term -- Alter that path. I they have in the past kind of implied. That they don't consider. The rest of the world's markets to be their responsibility now in reality they control the supply of money for them the big. Reserve currency of the world so clearly they have. Some role to play here but they try not to. Sort of explicitly say they're doing anything with an eye toward how foreign markets might behave so I do think they're probably gonna stick to the planet is going to be a lot of soothing language about keeping interest rates low for very long period of time. And perhaps a communication. For people to find some relief than their words. If there is some kind of a lighthearted moment in all of this this may as well be -- one person who did lose out very big today. Mexican billionaire Carlos Slim one of the richest in -- it -- if not the richest men in the we're losing out. One point two billion dollars in the selloff -- meant a lot even for him. Well when you start with seventy billion is -- a lot -- not so he basically you know like anybody who that was broadly exposed to the markets. He's down something like 2% of his overall wealth today because most of his wealth. Is in the big public companies so it's a big number obviously. I don't know -- it feels like that to him to be a very big number but there's no doubt about it you know when you start -- to have much. Even little up percentage losses -- -- Yeah I I can -- one -- -- -- to have actually very good day today Jamey Wright Jamie -- getting -- how much that he take. Getting erased up by twenty million dollars for the past year so basically in his -- in the board of JPMorgan. Sets his compensation last year they had cut in half just about. Kind of as a gesture to say look you know we had a big trading loss on your watch -- a lot of this regulatory issue after all these lawsuits we have to contend with. And they sort of essentially returned it close to. The prior level of 29 -- doesn't happen to be. Just about -- all the other big global banks are paying their CEOs so I guess it's more of -- more the the board saying you know we thought that the punishment so to speak was enough. For the one year and by the way JPMorgan stock had been. Roughly an all time high and in general is considered to be. Very profitable well run. Institutions and to -- the back story and that twenty billion dollar fine for JPMorgan that they had to put that last year yet total a sum of all the finds that they've had so far pasture well -- The look and find out exactly how the Dow did end the day the Dow down about 318 points closing below 161000 at 151879. Mike's Angela from Yahoo! finance thank you have a good weekend sir -- provided it. Thank you -- you've been watching the closing bell reports on Dan Butler New -- -- with ABC news. Dot com for your latest headlines.

This transcript has been automatically generated and may not be 100% accurate.

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