United States stocks hold near 14-month low on a volatile day

20 December, 2018, 15:07 | Author: Frank Williams
  • Dow dumps 400 points, on track for lowest close since April

US stock-index futures rose as signs of progress keep emerging in the U.S.

Follow the latest market moves at Markets Insider. The S&P 500 decreased 54.01 points, or 2.08 percent, to 2,545.94. The S&P 500 posted no new 52-week highs and 87 new lows; the Nasdaq Composite recorded eight new highs and 523 new lows.

Adding to the gloomy mood, the German Ifo economic institute's business climate index fell for the fourth month in a row to its lowest level in more than two years and Japan's government revised down its economic growth forecasts.

For the past five decades, the last week of the year and first couple of trading sessions in January have been a healthy time for stocks, with indexes marking more than 1 percent gains.

Those losses would eclipse the most recent major slump, in 2002, when both the S&P and the Dow dropped about 6% in December.

Occasionally, however, no such rally materializes, and 2018 is shaping up to be one of those years, with analysts describing the market's December run as "Grinch-like".

Markets have been rattled throughout the year amid fears of rapid interest rate hikes.

"At this point, the market is pricing in a material slowdown next year as sentiment and positioning have reached levels not seen since the last recession scare in early 2016", the USA equity strategy team said.

The sharply lower close on Wall Street came amid lingering concerns about global economic growth as well as continued uncertainty about trade between the US and China.

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European stocks are lower, with Germany's DAX slipping 0.35% and Britain's FTSE 100 down more than 0.7%.

Twitter Inc shares slid 6.8 percent after the social media company warned of suspicious traffic from China and Saudi Arabia and disclosed an issue that could have revealed the country code of its users' phone numbers.

Hospital operators and insurers that would stand to lose if the law is weakened or overturned took some of the biggest losses early Monday.

ENERGY: Oil prices bounced back slightly after plunging on worries about rising supplies and weakening global growth, which could weigh on demand. It lost $3.35 to $56.26 a barrel in London.

Gold is flat on the day, trading at 0.00% difference from its opening price.

"It would be problematic for the future announcements by the Fed".

Investors, however, are anxious that the Fed may signal numerous hikes in 2019, which many believe could stall U.S. economic growth.

An indication that the Fed would slow its pace of interest-rate hikes could calm markets, but the U.S. central bank's intentions remain unclear, said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.

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