BUSINESS

TSX Down More Than 200 Points After 2 Nasty Days On Wall Street

01/24/2014 04:57 EST | Updated 01/24/2014 04:59 EST

TORONTO — The Toronto stock market plunged over 200 points as emerging market worries persuaded investors to avoid riskier assets like equities and commodities.

The S&P/TSX composite index dropped 215.18 points to 13,717.79. The Canadian dollar was ahead 0.21 of a cent to 90.31 cents US.

The Dow Jones industrials fell 318.24 points to 15,879.11 after plunging 176 points on Thursday. The Nasdaq was 90.7 points lower to 4,128.17 while the S&P 500 index was down 38.17 points to 1,790.29.

Investors are worried about sharp drops in the values of currencies in several emerging markets, including Turkey, Russia, South Africa and Argentina.

These drops were sparked by moves by the U.S. Federal Reserve to cut back on its massive bond purchases, a key stimulus measure that kept long-term rates low.

But U.S. bond yields have risen as the Fed moves to taper its purchases, and investors have responded by taking their money out of emerging markets.

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