Stocks pare sharp losses after report that Fed may take wait-and-see approach to future policy decisions

REUTERS/Lucas Jackson

US stocks clawed higher after falling sharply early Thursday. The Wall Street Journal reported the Federal Reserve might adopt a wait-and-see approach to future policy decisions.  On Tuesday, Wall Street suffered its worst day since October. Watch the major US indexes trade in real time here.

Wall Street closed mixed Thursday as concerns about a cocktail of factors including trade tensions, Treasury yields, and energy prices weighed on global markets, extending losses for the Dow Jones Industrial Average and S&P 500 following the worst day for US equities in seven weeks.

Stocks climbed back from sharp losses and the Nasdaq Composite turned positive Thursday afternoon after the Wall Street Journal reported that the Federal Reserve may adopt a wait-and-see approach to future policy decisions.

The Dow shed 0.3%, or about 77 points. The Nasdaq rose 0.4%, and the S&P 500 was down 0.1%. The three main US indices had earlier lost more than 2% each.

Stocks had suffered their worst day since October on Tuesday as expectations for a trade deal between Washington and Beijing unwound and after sections of the yield curve inverted. The stock market was closed Wednesday, a national day of mourning for former President George H.W. Bush, who died over the weekend.

When futures trading resumed early Thursday, selling pressure was so strong in the first six minutes that CME Group was forced to intervene with market pauses to prevent severe price movements, according to Bloomberg.

Canadian authorities on Wednesday evening confirmed the arrest of Meng Wanzhou, the chief financial officer of the Chinese cellular giant Huawei Technologies, on suspicion of violating US sanctions on Iran. The arrest, which happened Saturday, cast doubt on trade relations between Washington and Beijing, who agreed over the weekend to pause tariff escalations for negotiations.

Optimism around the

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