Rollercoaster day on Wall Street as stocks recover from early plunge

“The 10-year yield has come to represent all of the concerns about global growth at this very moment, so the stock market has latched onto it, like a kid to a lollipop. So when yields started to rise today, the stock market started to rise,” he said.

“I wouldn’t expect the market to shoot back to its high. We could be stuck in a range as this stuff sorts itself out.”

During the session, the premium on three-month Treasury bill rates over 10-year Treasury yields, a closely watched US recession indicator, was at its most elevated levels since March 2007.

Financials were the biggest loser among S&P 500 sectors, down 1.2 per cent, while the staples and materials indexes ended up more than 1 per cent each.

Investors also were attracted to some bargains in shares after the recent sell- off. The S&P 500 is down 4.7 per cent since its July 26 record high close.

The Dow Jones Industrial Average fell 22.45 points, or 0.09 per cent, to 26,007.07, the S&P 500 gained 2.21 points, or 0.08 per cent, to 2,883.98 and the Nasdaq Composite added 29.56 points, or 0.38 per cent, to 7,862.83.


Interest rates futures suggested traders are building bets the Fed will cut interest rates three more times by year-end.

Central banks in New Zealand, India and Thailand on Wednesday cut their lending rates amid growing fears that the US-China trade war could aggravate a slowdown in the global economy.

Trade concerns re-emerged after President Donald Trump last week threatened to slap 10 per cent levies on the rest of $US300 billion of Chinese imports and called China a currency manipulator on Monday.

The energy sector was down 0.8 per cent after oil prices slid.

On the plus side, CVS

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