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US stocks continue slide, losing 1,300-plus points over 2 days

Asian markets wake to another steep New York fall, while Trump criticizes Fed policy

A trader at the New York Stock Exchange on Oct. 11, when the Dow Jones Industrial Average slumped nearly 700 points lower.   © AP

NEW YORK/LONDON -- U.S. stocks swooned once again Thursday following the previous day's rout on Wall Street as concerns over rising interest rates and Washington's trade war with Beijing hit home with investors.

The Dow Jones Industrial Average plummeted as much as 698 points, touching a low not seen since mid-July. Stocks rebounded later in a volatile bout of afternoon trading to close down 545, or 2.1%, at 25,053, adding up to 1,377 points' worth of bleeding over two days.

President Donald Trump took aim at the Federal Reserve again on Thursday, telling reporters at the White House that the central bank's actions are "wrong."

"We have interest rates going up at a clip that's much faster than certainly a lot of people, including myself, would have anticipated. I think the Fed is out of control. I think what they're doing is wrong," he said.

The president also said that he believed the strong U.S. currency was becoming an obstacle for business. "The dollar is very strong, very powerful," causing "a little difficulty with doing business, frankly," he said.

Thursday's release of the consumer price index showed disappointing inflation for September, which eased long-term Treasury rates down. That helped tech stocks like Microsoft recover somewhat from Wednesday's losses.

But the lower yields caused banks to fall across the board due to the perceived pressures on profit margins. Chevron and other energy majors took a hit as crude oil futures slid. The volatility index reached 28.84 at one point, a 26% spike from Wednesday to attain levels recorded in February, during another equities skid.

Elsewhere around the world, London's FTSE 100 closed nearly 2% lower to 7,006 points, the weakest finish since late March. About 80% of the constituents were off Thursday. In Germany, the DAX benchmark dipped 1.48% to 11,539 points, a valley not seen since February of last year.

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