That was its biggest loss since August 2011, when stocks were reeling as investors were fearful about European government debt and the US had its credit downgraded after the debt ceiling impasse.
"We certainly could be looking at a market that's going to have to get more comfortable with the potential for a higher rate of inflation and potentially higher interest rates".
On Monday, the FTSE 100 lost 255 points and was down by more than 3% to 7,079.41 due to the massive selloff in US stocks that affected the European and Asian market before the index recovered up by 1.9% to 7,196. The Nasdaq lost 274 points, or 3.9 percent, to 6,777.
That following a surprise late rally on Wall Street last night that saw the Dow jump by 567 points - its biggest gain since Donald Trump was elected U.S. president. The Dow stands down about 9% from its all-time high.
Trading has been turbulent all day.
For the second time this week, the Dow plunged more than 1,000 points.
United States government shuts down for second time
That could mean a shutdown of just a few early-morning hours, a half a working day or more , depending on when voting takes place. Paul used a procedural move to stall the legislation - the result of a major bipartisan budget deal - from coming up for a vote.
The gains across the pond, however, did not spread to Asian markets, with the majority posting losses.
The S&P 500 also plunged 3.7 percent by the end of the trading day for a new weekly low. The stock dropped $2.39, or 10.9 percent, to $19.57.
The question for investors is whether the turbulence is a sign that the long bull market is over.
President Trump has touted the roaring stock market as one of his presidential achievements.
Travel bookings site TripAdvisor was one of only two S&P 500 companies that finished higher on Monday. It's still up 15 percent over the past year.
The selloff in stocks that began last week has been built on concerns over higher interest rates and lofty valuations. The yield on the 10-year Treasury note rose to 2.80 percent from 2.71 percent.
Gold was the only positive sector on the commodity-heavy index on Thursday, as more investors shifted toward the safe-haven asset.
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First out the gate was Swoop on a skateboard and a flatbed truck full of Eagles cheerleaders and pep band to pump up the crowd. However, Eagles head coach Doug Pederson deserves a lot credit for keeping his team on point over the course of the season.
Thursday's losses were steady, rather than the sharp falls seen over the past few days, however.
Trading was 50 per cent higher than average. "It's rising yields and inflation worries", said Chuck Carlson, chief executive officer at Horizon Investment Services, in Hammond Indiana.
"The only data point of the day showed the US non-manufacturing sector started 2018 in robust health", he said. On Thursday, the bank's leader said British regulators may have to ease off of the economic stimulus faster than expected. "Corrections are caused by people having to reposition for new environments". If investors think it is something more and decide to sell, that would just drive the markets lower.
Investors are also concerned about the prospect of higher inflation as the U.S. economy strengthens.
Benchmark U.S. crude oil lost 64 cents, or 1 percent, to $61.15 a barrel in NY. Brent crude, the worldwide standard for oil prices, gave up 70 cents, or 1.1 percent, to $64.81 per barrel in London.
Carsales.com was down 3.4 per cent despite posting a 27 per cent increase in half-year profit, and construction giant CIMIC had jumped 5.5 per cent after it boosted its dividend following annual profit growth of 21 per cent. Natural gas added 1 cent to $2.76 per 1,000 cubic feet.
Twitter Q4 revenue up, user base at 330 mn
Twitter first announced that it was expanding the tweet limit to 280 characters for a select number of users in September 2017 . Twitter's stock - up 10 percent this year - has been outperforming Facebook's (NASDAQ: FB) since the start of 2018.
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