Wall Street Rallies, But Loses Gains In The End
First, things were looking good. But then towards the end, it got worse. The gloomy outlook on the Chinese economy continues to cast a gloomy spell on Wall Street despite lower valuations. It is greatly perceived that a snag in the Chinese economy would mean a slump in the global economy, and that has made investors quite nervous.
Reuters reports that major indices have managed to go up by almost 3%. However, as the trading session ended, they have ended up becoming negative. Moreover, CNBC reports that both the Dow Jones and the S&P 500 closed as much as 1.3% lower, marking its biggest reversal since October 29, 2008.
NYSE invokes Rule 48 once again
Just like on Monday, the New York Stock Exchange also invoked Rule 48 for Tuesday’s trading session. It has been rarely used in the past and helps preempt panic selling in the stock market. This is only done when there is extremely high market volatility, which would likely have a floor-wide impact on designated market makers’ (DMMs) ability to disseminate price indications before trading opens. This means Rule 48 does away with having to announce stock prices at market open.
US stocks managed to climb up, but the S&P still had one of its roughest days
CNBC reports that on Tuesday morning, the Dow managed to climb up by over 300 points at trade opening. Meanwhile, CNN Money reports that the Dow managed to gain as much as 442 points during Tuesday’s trading session. But that did not manage to curb the Dow’s loss by end of trading. In fact, it even dropped by more than 1,000 points at some point during the trading session. Meanwhile, the S&P is said to have suffered its worst day since 2011.
In the end, the Dow fell 204.91 points or 1.29%, ending at 15,666.44 points. Meanwhile, the S&P 500 ended trading at 1,867.62 points, reflecting a lost of 25.59 points or 1.35%. In addition, the Nasdaq Composite also wend down by 19.76 points of 0.44%, ending at 4,506.49 points.