Investors have also been wary about a trade war after China chose to impose extra tariffs on 128 USA products over the weekend, in retaliation to Trump’s decision to impose tariffs on steel and aluminium.
Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed by 5.2 basis points to 2.784 percent.
The Standard & Poor’s 500 index skidded 80 points, or 3 percent, to 2,560 as of 2:30 p.m. The blue-chip gauge had been down by as many as 510 points at its session low.
Despite a late afternoon comeback, the Dow closed down 459 points at 23,644, while the Nasdaq Composite fell 193 points to 6870. About 469 of the S&P 500 components were lower.
The Nasdaq is down 33.27 points, or 0.5 percent. Meanwhile, the S&P 500 sank 2.23 percent – re-entering correction territory and closing below its 200-day moving average for the first time since June 2016.
Equities have been extremely volatile of late.
U.S. stocks held their ground in volatile mid-day trading, with the Dow Jones maintaining its grip with a 142-point increase at 23,800.
Declining issues outnumbered advancing ones on the NYSE by a 4.17-to-1 ratio; on Nasdaq, a 4.14-to-1 ratio favoured decliners.
Stocks made a roaring comeback on Wednesday, bouncing off steep losses stemming from China’s announcement of new tariffs on US goods.
Trump still plans to place additional tariffs on $50 billion worth of Chinese goods, with Beijing promising to respond, as reported by CNN.
USA stocks closed strongly higher as the tech sector rebounded from yesterday’s crash.
“None of it makes a lot of sense”, said Michael Block, chief strategist at Rhino Trading Partners. “I wouldn’t say there’s much confidence the broader market has either”, said Paulsen.
Which stocks are in focus? Boeing Co.’s stock (BA) fell 1%, while heavy-machinery maker Deere & Co.(DE) fell 2.9%.
Stocks may be volatile, but the backdrop looks bright. CBS shares rose 0.9 per cent.
“Investors are pricing in an escalating trade war and regulation of tech companies”.
Tesla Inc. shares (TSLA) gained 7.3% in its biggest one-day gain in about a year.
Tesla TSLA.O shares pared some early losses after a report that the electric vehicle maker’s crucial Model 3 sedan production would be a big jump from earlier numbers but could still fail to meet the company’s 2,500 per week target.
“As a sector, technology has the most to lose from a world in which global trade is restricted and of course, some of the subjects of the tariffs, will also be hit”, said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
Spotify made its debut in a direct listing on the New York Stock Exchange, with shares opening at $165.90, compared with the reference price of $132. Shares fell 3.2% on Wednesday.
All eyes will be on major stock markets today to see if they can recover from the severe pounding they took Monday.
Copper rose 2 cent to $3.05 a pound. It was the best day for the stock since May 2010. Other Asian markets were closed at the time of China’s announcement. And the company is expected to report in coming days on Model 3 deliveries.
China’s move was a retaliation for USA tariffs on imported steel and aluminum, and were targeted at exports including pork and fruit.