>> A historic session on Wall Street. The Dow dropping nearly 700 points Friday, in one of the biggest stock market point drops ever. The massive sell off capping of the stock market's worst week in two years and the steepest tumble since Trump moved into the White House.>> I'm in New York.
The intense selling in the stock market began with the report showing the biggest jump in annual wages in nine years. That then sparked fear on Wall Street that the Federal Reserve may have to hike interest rates more than the three times this year than already planned. The bond market then took that and pushed borrowing costs significantly higher.
>> Higher interest rates can eat into corporate profits down the line, forcing investors to rethink how much their stock holdings are worth now. All sectors ended Friday in the dumps led by energy and tech. The biggest tech stock of them all was to blame. Apple made more money, but sold fewer iPhones last quarter.
The results prompted new worries about Apples reliance on the aging device. Shares of Apple now down over 10% from their recent high. A sign of how negative investor sentiment really is. But it wasn't just Apple, wages and interest rates spooking investors.>> I think it's a disgrace what's happening in our country.
>> Politics also weighed on investor sentiment. A Republican led House panel released a controversial memo alleging FBI bias in the Russian investigation. Investors fear this adds a political risk to the market. Amazon, however, seemed immune to all the negativity. Shares rallied to an all time high after the online retailer posted its biggest profit ever.
Investors, happy to park their cash with what seemed to be the only feel good story out there.