US Market Indexes Rally, but End Flat Tuesday

US Market Indexes Rally, but End Flat Tuesday

The Dow Jones Industrial Average lost 208 points, or 0.9 percent, to 23,893.

Trading was turbulent. Two days of widespread market declines had knocked 1,004 points off the Dow Jones Industrial Average, and on Tuesday, investors couldn't find a convincing reason for stock prices to go higher. The Shanghai Composite index shed 1.1 percent to 2,549.56. The drops come as investors worry about continuing trade tensions, a court ruling declaring Obamacare unconstitutional, the potential partial government shutdown, the unresolved Brexit issue, and a rising backlash against big tech companies.

USA stock markets again swept downward Monday as the volatility of recent weeks resumed ahead of the holidays.

"It is incredible that with a very strong dollar and virtually no inflation... the Fed is even considering yet another interest rate hike", Trump tweeted Monday.

Cryptocurrency, on the other hand, made a bit of a recovery, with bitcoin up more than 8% to about $3,539.33 and Ethereum up more than 10% to $95.09 in the past 24 hours, according to CoinMarketCap data.

Oil prices have dropped sharply as oil supplies increased and demand weakened as the global economy slows down. The index is 21 percent off its peak set in August, past a level the Wall Street terms a "bear market".

Bank stocks were fractionally lower on the day, with the KBW Bank Index down 0.25% as the spread between the 2- and 10-year yields held near 16 basis points.

Bargain hunting is likely to contribute to initial strength on Wall Street, with traders picking up stocks at reduced levels on the heels of the sharp drops seen Friday and Monday.

Most analysts still expect the central bank to lift interest rates but the stock market's pullback in December has boosted the still-slim odds the Fed will take no action.

A speech by Chinese President Xi Jinping, which investors had hoped could lift morale, had little impact, with Chinese shares falling over 1 percent.

"I think they shouldn't raise them this week", said Jeffrey Gundlach in an interview Monday with CNBC.

The U.S. economy "can ill afford a major policy error, either from the Fed or the rest of the administration", said the authors.

The S&P 500 is down 127.45 points, or 4.8 percent.

USA stocks eked out modest gains amid volatile trading as investors weighed strong tech earnings against concerns about global growth.

Oil prices dropped $3.66 to $46.22 US a barrel. The S&P 500 and the Nasdaq were both lower by about 1.7%. Brent crude, used to price global oils, sank 5.6 percent to $56.26 a barrel in London.

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