U.S. stocks clawed their way back from steep losses to close the session little changed in what was a wild day for equity investors.
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|I:DJI||DOW JONES AVERAGES||26827.64||+57.44||+0.21%|
|I:COMP||NASDAQ COMPOSITE INDEX||8162.987048||+73.44||+0.91%|
The Dow Jones Industrial Average plunged around 500 points as worries about a global recession picked up steam following several global central banks that cut interest rates. New Zealand's central bank cut its official cash rate 50 basis points to a record low of 1 percent, which was larger than expected. While the Bank of Thailand followed suit, cutting its one-day repurchase rate by 25 basis points to 1.5 percent. And the Reserve Bank of India cut interest rates by an unconventional 35 basis points slightly above expectations, its fourth cut this year. The U.S.-China trade war also remains an overhang.
As a result, the 10-year Treasury yield tumbled to a fresh low of 1.622 percent, the lowest since October 4, 2016.
Following word of more central bank rate cuts, President Trump, yet again, bashed the Federal Reserve. "Three more Central Banks cut rates.” Our problem is not China - We are stronger than ever, money is pouring into the U.S. while China is losing companies by the thousands to other countries, and their currency is under siege - Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!)..." he tweeted.
Oil prices tumbled nearly 4 percent to a fresh seven-month low, following an unexpected rise crude supplies and fears of lower crude demand due to deepening U.S.-China trade tensions. Brent crude oil. closed in bear market. territory this week, falling more than 20 percent from an April peak, reflecting fear that has permeated the global marketplace with many now worrying that the world is headed toward a major economic slowdown.
|DIS||WALT DISNEY COMPANY||130.26||-0.63||-0.48%|
|CVS||CVS HEALTH CORPORATION||65.70||-0.46||-0.70%|
Walt Disney Co reported a bigger earnings decline than expected after the markets closed on Tuesday. The company poured money into its streaming media and began integrating assets purchased from Twenty-First Century Fox, former parent of FOX Business and Fox News. Shares fell nearly 5 percent. In other earnings news, CVS shares jumped over 7 percent after boosting its financial forecast, in part due to higher drug prices.
FOX Business' Ken Martin contributed to this report.