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.

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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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