U.S. stocks tumble amid worries over possible economic slowdown

U.S. stocks tumble amid worries over possible economic slowdown

The Dow Jones Industrial Average fell 73.87 points, or 0.29 per cent, at the open to 25,752.56.

Meanwhile in China, where tariff negotiations with the USA are also being watched closely, the Shanghai composite index closed down 0.6 percent, recovering from a steeper drop at the open.

The technology-heavy Nasdaq composite lost 283.09 points, or 3.8 percent, to 7,158.43.

Among other Dow components that plunged were Caterpillar, Boeing and Intel which declined 6.93 percent, 4.85 percent and 4.75 percent respectively.

While the US stock market soared on the news of a possible US-China trade truce, the delay in implementing the deal is worrying investors. That's why interest rates on, say, five-year notes tend to be higher than those on two-year notes, and 10-year notes tend to pay even more than that. The yield on five-year Treasury bonds has fallen below the yield on a three-year bond for two days running, meaning that USA investors are being paid more to hold government debt that matures in three years than in five years.

But the market's optimism faded Tuesday amid published reports questioning the scant details out of the Trump-Xi talks and growing skepticism that Beijing will yield to USA demands anytime soon. The Treasury held auctions for four-week bills at a rate of 2.320% and 52-week bills at a rate of 2.635%. The Nasdaq composite gave up 84 points, or 1.1 percent, to 7,356. The S&P 600 closed at 925.06 for a loss of 44.71 points or -4.61%.

By 10.05 am the NZX-50 was off by 112 points at 8753, following an 800-point fall on Wall Street's Dow Jones index.

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Gold gained 0.6 percent to $1,246.60 an ounce.

American markets fell sharply last night amid fresh concerns about the strength of the United States economy and the future of President Trump's trade war with China.

Oil prices rose. OPEC members are expected to agree at a Thursday meeting to cut output in 2019.

Stock and bond trading will be closed in the U.S. Wednesday in observance of a national day of mourning for former President George H.W. Bush. Copper fell 1.8 percent to $2.78 a pound. Seoul's Kospi shed 0.6 percent to 2,102.17 and benchmarks in Taiwan, New Zealand and Southeast Asia also declined. Brent crude, used to price worldwide oils, lost 63 cents to $61.45 per barrel in London. Silver rose 1 percent to $14.64 an ounce.

AutoZone climbed 5.6 percent to $870.65 after the auto parts retailer delivered third-quarter earnings that exceeded analysts' forecasts. The euro was little changed at $1.1342. Germany's DAX lost 1.1 percent, while France's CAC 40 dropped 0.8 percent. Heating oil climbed 0.7 percent to $1.90 a gallon.

The S&P 500 is up 26.45 points, or 1 percent.

The Dow lost 574 points, or 2.2 percent, to 25,253.

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