Wild winds fuel Southern California wildfire that has forced thousands to evacuate

CAMARILLO, Calif. (AP) — A fast-moving wildfire fueled by heavy winds was tearing through a community northwest of Los Angeles for a second day Thursday after destroying dozens of homes and forcing thousands of residents to flee when it exploded in size in only a few hours.

The Mountain Fire prompted evacuation orders Wednesday for more than 10,000 people as it threatened 3,500 structures in suburban communities, ranches and agricultural areas around Camarillo, California Gov. Gavin Newsom said in a statement. The fire was at 0% containment late Wednesday, according to the Ventura County Fire Department.

The National Weather Service said a red flag warning, which indicates conditions for high fire danger, would remain in effect until 6 p.m. Thursday. Winds were expected to decrease significantly by Thursday night, the weather service said.

Officials in several Southern California counties urged residents to be on watch for fast-spreading blazes, power outages and downed trees amid the latest round of notorious Santa Ana winds.

The Mountain Fire was burning in a region that has seen some of California’s most destructive fires over the years. A thick plume of smoke rose hundreds of feet into the sky Wednesday, blanketing whole neighborhoods and limiting visibility for firefighters and evacuees. The fire grew from less than half of a square mile (about 1.2 square kilometers) to more than 16 square miles (62 square kilometers) in little more than five hours.

First responders pleaded with residents to evacuate. Deputies made contact with 14,000 people to urge them to leave as embers spread for miles and sparked new flames.

Ventura County Fire Captain Trevor Johnson described crews racing with their engines to homes threatened by the flames to save lives.

“This is as intense as it gets. The hair on the back of the firefighters’ neck I’m sure was standing up,” he said during a news conference Wednesday afternoon.

Two people suffered apparent smoke inhalation and were taken to hospitals Wednesday, fire officials said. No firefighters reported significant injuries.

Officials said they were using all resources, including water-dropping helicopters and fixed-wing aircraft dropping fire retardant, but it was still burning out of control. Andrew Dowd, a Ventura County fire spokesperson, said he did not have details of how many structures had been damaged.

Meanwhile to the south, Los Angeles County Fire Department crews were scrambling to contain a wildfire near Malibu’s Broad Beach as authorities briefly shut down the Pacific Coast Highway as flames burned near multimillion-dollar properties. Residents were urged to shelter in place while aircraft dropped water on the 50-acre (20-hectare) Broad Fire. By late Wednesday, the fire was at 60% containment and its forward progress was stopped, the Los Angeles County Fire Department said in a statement. Fire officials said two structures burned.

With predicted gusts up to 50 mph (80 kph) and humidity levels as low as 9%, parts of Southern California could experience conditions ripe for “extreme and life-threatening” fire behavior into Thursday, the weather service said. Wind gusts topped 61 mph (98 kph) on Wednesday.

Forecasters also issued red flag warnings until Thursday from California's central coast through the San Francisco Bay Area and into counties to the north, where strong winds were also expected.

Utilities in California began powering down equipment during high winds and extreme fire danger after a series of massive and deadly wildfires in recent years were sparked by electrical lines and other infrastructure. On Wednesday, more than 65,000 customers in Southern California were without power preventatively, and upwards of 20,000 in Northern California.

Wednesday's fires were burning in the same areas of other recent destructive fires, including the 2018 Woolsey Fire, which killed three people and destroyed 1,600 homes near Los Angeles, and the the 2017 Thomas Fire, which destroyed more than a thousand homes and other structures in Ventura and Santa Barbara counties. Southern California Edison has paid tens of millions of dollars to settle claims after its equipment was blamed for both blazes.

Dazio and Weber reported from Los Angeles. Associated Press journalists Ryan Pearson in Los Angeles, Amy Taxin in Orange County, California, Olga Rodriguez and Janie Har in San Francisco, and Hannah Schoenbaum in Salt Lake City contributed to this report.

A firefighter watches as flames from the Mountain Fire consume a home in Camarillo, Calif., on Wednesday, Nov. 6, 2024. (AP Photo/Noah Berger)

Flames engulf a structure during the Mountain Fire in Camarillo, Calif., Wednesday, Nov. 6, 2024. (Stephen Lam/San Francisco Chronicle via AP)

Flames consume a home as the Mountain Fire burns in Camarillo, Calif., on Wednesday, Nov. 6, 2024. (AP Photo/Noah Berger)

Smoke rises from the Mountain Fire as seen from a commercial flight near Ventura County, California, Wednesday Nov. 6, 2024. (Stephen Lam/San Francisco Chronicle via AP)

In this aerial still image provided by KABC-TV, shows Los Angeles County Fire Department crews scrambled to contain a small blaze fed by erratic wind gusts that pushed flames through dry brush near Broad Beach along Pacific Coast Highway in Malibu on Wednesday, Nov. 6, 2024. (KABC-TV via AP)

In this aerial still image provided by KABC-TV, shows Los Angeles County Fire Department crews scrambled to contain a small blaze fed by erratic wind gusts that pushed flames through dry brush near Broad Beach along Pacific Coast Highway in Malibu on Wednesday, Nov. 6, 2024. (KABC-TV via AP)

Flames consume a home as the Mountain Fire burns in Camarillo, Calif., on Wednesday, Nov. 6, 2024. (AP Photo/Noah Berger)

Firefighters work against the Mountain fire, Wednesday, Nov. 6, 2024, near Camarillo, Calif. (AP Photo/Marcio Jose Sanchez)

Flames consume a home as the Mountain Fire burns in Camarillo, Calif., on Wednesday, Nov. 6, 2024. (AP Photo/Noah Berger)

Firefighters work through heavy winds and smoke in the Mountain fire, Wednesday, Nov. 6, 2024, in Camarillo, Calif. (AP Photo/Marcio Jose Sanchez)

A firefighter works in the Mountain fire, Wednesday, Nov. 6, 2024, near Camarillo, Calif. (AP Photo/Ethan Swope)

Flames engulf a structure during the Mountain Fire, Wednesday, Nov. 6, 2024, near Camarillo, Calif. (AP Photo/Ethan Swope)

A helicopter drops water over a burning home in the Mountain fire, Wednesday, Nov. 6, 2024, near Camarillo, Calif. (AP Photo/Marcio Jose Sanchez)

A political sign sits in front of a destroyed home in the Mountain fire, Wednesday, Nov. 6, 2024, near Camarillo, Calif. (AP Photo/Ethan Swope)

A fire burns a house in the Mountain fire, Wednesday, Nov. 6, 2024, in Camarillo, Calif. (AP Photo/Marcio Jose Sanchez)

A firefighter, moves bicycles as he works against the Mountain fire, Wednesday, Nov. 6, 2024, near Camarillo, Calif. (AP Photo/Ethan Swope)

A helicopter drops water over flames in the Mountain fire, Wednesday, Nov. 6, 2024, near Santa Paula, Calif. (AP Photo/Ethan Swope)

CORRECTS CAR - Firefighters and sheriff's deputies push a vintage car away from a burning home as the Mountain Fire burns in Camarillo, Calif., on Wednesday, Nov. 6, 2024. (AP Photo/Noah Berger)

Television reporters film as flames from the Mountain Fire consume a home in Camarillo, Calif., on Wednesday, Nov. 6, 2024. (AP Photo/Noah Berger)

Shares were mostly higher in Europe and Asia on Thursday after U.S. stocks stormed to records as investors wagered on what Donald Trump’s return to the White House will mean for the economy and the world.

Markets also were turning their attention to the Federal Reserve’s decision on interest rates, due later in the day.

In early European trading, Germany's DAX gained 0.8% to 19,196.73. In Paris, the CAC 40 was nearly unchanged, at 7,368.10. Britain's FTSE 100 edged 0.2% higher to 8,182.27.

The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.1%.

In Asia, Japan's Nikkei 225 fell 0.3% to 39,381.41, reflecting worries over the potential for a revival of trade tensions under a Trump administration.

“I think everybody’s going to be worried about Trump's tariffs because that’s one of the things in his playbook. And so we’ll have to see how things develop in the early stages of his presidency this time," said Neil Newman, head of strategy for Astris Advisory Japan.

South Korea's Kospi finished nearly flat, at 2,564.63. Australia's S&P/ASX 200 rose 0.3% to 8,226.30.

Chinese shares rallied after the government reported that exports jumped nearly 13% in October over a year earlier, the fastest pace in more than two years and far outpacing the 2.4% increase in September.

Hong Kong's Hang Seng gained 2% to 20,953.34. The Shanghai Composite index was up 2.6% at 3,470.66.

Trump has promised to slap blanket 60% tariffs on all Chinese imports, raising them still more if Beijing makes a move to invade the self-governing island of Taiwan.

Investors are adding to bets built earlier on what the higher tariffs, lower tax rates and lighter regulation that Trump favors will mean. Higher tariffs on imports from China would add to the burdens Beijing is facing as it struggles to revive slowing growth in the world's second-largest economy.

But the impact may be less drastic than feared, Zichun Huang of Capital Economics said in a report.

“We expect shipments to stay strong in the coming months –- any drag from potential Trump tariffs may not materialize until the second half of next year," Huang said.

Still, higher tariffs on imports from China, Mexico and other countries would raise the risk of trade wars and other disruptions to the global economy.

Trump's win raised expectations that Beijing may ramp up its spending and other stimulus to counter such trends. The Standing Committee of China's legislature is meeting this week and is expected to announce further measures by Friday.

Francis Lun, CEO of Geo Securities, said domestic issues were a greater concern than tariffs. "People want the government to spend some money to boost the economy, instead of looking outward,” he said.

On Wednesday, the U.S. stock market, Elon Musk’s Tesla, banks and bitcoin all stormed higher, as investors made bets on what Donald Trump’s return to the White House will mean for the economy and the world. Among the losers the market sees: the renewable-energy industry and potentially anyone worried about higher inflation.

The S&P 500 rallied 2.5% to 5,929.04 for its best day in nearly two years. The Dow Jones Industrial Average surged 3.6% to 43,729.93, while the Nasdaq composite jumped 3% to 18,983.47. All three indexes topped records they had set in recent weeks.

The impact of Trump's second term will likely depend on whether his fellow Republicans win control of Congress, and that’s not yet clear.

Investors see Trump’s policies potentially leading to stronger economic growth. That helps push prices down and yields up for Treasurys. Tax cuts under Trump could further swell the U.S. government’s deficit, increasing borrowing and forcing yields even higher. The yield on the 10-year Treasury jumped to 4.43% from 4.29% late Tuesday, which is a major move for the bond market. It’s up substantially from August, when it was below 4%.

Investors expect the incoming president's policies, particularly higher tariffs, to fan inflation and add costs to U.S. household bills. Sharp cutbacks in immigration could also leave businesses shorthanded, forcing companies to raise wages for workers faster and putting more upward pressure on prices.

Much of Wall Street’s run to records this year was built on expectations for cuts to interest rates by the Federal Reserve, as inflation has headed back down to its 2% target. Easier interest rates help boost the economy, but they can also give inflation more fuel.

The expectation is that the Fed will cut its main rate Thursday, but traders are already paring back forecasts for how many cuts it might make next year.

In other dealings early Thursday, the U.S. dollar weakened against the Japanese yen, slipping to 154.05 yen from 154.62 yen. The euro rose to $1.0757 from $1.0730.

U.S. benchmark crude oil shed 8 cents to $71.61 per barrel. Brent crude, the international standard, was up 2 cents at $74.94.

The price of bitcoin slipped to $74,789.38 after hitting an all-time high above $76,480 on Wednesday, according to CoinDesk. Trump has pledged to make the country “the crypto capital of the planet” and create a “strategic reserve” of bitcoin.

A man passes a video monitor on the side of the New York Stock Exchange in New York's Financial District on Tuesday, Nov. 5, 2024. (AP Photo/Peter Morgan)

A board above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Wednesday, Nov. 6, 2024. (AP Photo/Richard Drew)

People pass the New York Stock Exchange in New York's Financial District on Tuesday, Nov. 5, 2024. (AP Photo/Peter Morgan)

A TV camera screen shows the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

Members of media stand near the screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A currency trader talks on the phone at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A tv cameraman films the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A currency trader walks by the screens showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)