Dow slides 327 points as Mnuchin backs out of Saudi conference

By MarketsFOXBusiness

This may be the start of a large selloff: Dennis Gartman

The Gartman Letter Publisher Dennis Gartman on the outlook for stocks.

U.S. stocks fell Thursday after U.S. Treasury Secretary Steven Mnuchin tweeted that he will not attend the Saudi summit.

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The Dow Jones Industrial Average slipped 327.23 points, or 1.27 percent, to 25,379.45. The blue-chip index fell as much as 470 points in another volatile session.

The broader S&P 500 dropped 40.43 points, about 1.4 percent, to 2,768.78. The Nasdaq Composite fell 157.56 points, or 2.06 percent, to 7,485.14.

Mnuchin joins a growing list of global business and world leaders that have cancelled their attendance at the Future Investment Initiative summit in Saudi Arabia next week, in response to Saudi Arabia’s potential involvement in the disappearance of journalist Jamal Khashoggi. FOX Business Network, a sponsor of the conference, also said it will not attend.

Prior to Mnuchin’s tweet, stocks were lower as investors digested the latest economic data and content of the Federal Reserve’s latest meeting minutes which signaled policymakers will continue to raise interest rates.

I:DJIDOW JONES AVERAGES25417.2-359.41-1.39%
SP500S&P 5002822.79-33.48-1.17%
I:COMPNASDAQ COMPOSITE INDEX7646.207584-104.63-1.35%

Economic data released Thursday included weekly jobless claims. Initial claims dropped by 5,000 to a seasonally adjusted 210,000 in the week ended Oct. 13, according to the Labor Department. This matched economists’ expectations. The four-week moving average fell to its lowest level since Aug. 18, 1973.

In commodities, gold steadied following the Fed minutes. Stocks and gold have been volatile amid concerns over rising Treasury rates.

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IBM's shares remained under pressure as a result of the company missing revenue expectations in its latest earnings.

Fox Business' Ken Martin contributed to this report

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