The S&P 500 and the Dow Jones Industrial Average slipped back to losses for the year on Thursday, as U.S. stocks fell on mounting worries of slowing global growth after a fresh twist in China-U.S. tensions as well as lower oil prices and U.S. bond yields.
Just after 2 p.m. ET, the Dow was down 457 points, or 1.9 percent, at 24,569, the S&P 500 was down 44 points, or 1.6 percent, at 2,655 and the Nasdaq Composite was down 65 points, or 1 percent, at 7,093.
At its low of the day, the Dow Jones Industrial Average dropped nearly 800 points, bringing its two-day losses to more than 1,500 points. But the market bounced off its lows midway through the trading day as shares of Amazon and Alphabet fought back into the green.
The Dow and the S&P were down more than 1.5 percent, tracking 0.4 percent losses for the year despite coming well off their session lows. The two indexes and the Nasdaq had tumbled more than 3 percent each on Tuesday.
The arrest of Chinese smartphone maker Huawei Technologies Co Ltd’s chief financial officer at the request of the United States cast fresh doubts over the prospect of Beijing and Washington striking a deal on trade tariffs in their 90-day truce period.
“Markets are extremely sensitive to any news regarding trade. The potential slowdown in global growth is also something the markets are pricing in,” said Massud Ghaussy, senior analyst at Nasdaq IR Intelligence in New York.
Optimism after the trade truce over the weekend boosted Wall Street on Monday, extending a rally from last week when the Federal Reserve signaled a slower pace of interest rate hikes.
But that optimism faded on Tuesday and, along with a drop in longer-dated U.S Treasury yields, triggered a slide