Dow shares were down 9.4% at $27.51 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.1% and down 0.4%, respectively. Before the cut, Dow stock yielded more than 9%. Based on the new payout and premarket price, the yield is about 5%.

Dow’s stock tumbles toward a five-year low after dividend was cut in half, and quarterly losses were much wider than expected.

Dow Inc.’s (DOW) stock is down 14% after the chemical producer announced that it is cutting its quarterly dividend payment by 50%. Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools,

The Dow Jones Industrial Average rallied 507 points, or 1.1%, and the Nasdaq composite climbed 0.6% to hit its own record. Stocks jumped even more in Tokyo, where the Nikkei 225 rallied 3.5% after President Donald Trump announced a trade framework that would place a 15% tax on imports coming from Japan.

World shares rose Thursday, buoyed by optimism that the U.S.-Japan tariff agreement announced a day earlier will be followed by more trade deals. Later Thursday, the European Central Bank was expected to hold off on making another interest rate cut as it waits to measure the size of any economic blow from higher U.