The Dow Jones struggled to recover from Wednesday’s 800 point loss after China decided to get tough with Trump – again. | Source: REUTERS/Leah Millis (i), AFP PHOTO / GULSHAN KHAN (ii). Image Edited by CCN.
The Dow ran into a brick wall, however, as the 200-day moving average immediately provided stern resistance – and prevented the index from recouping more than a minor portion of its losses from the previous session.
After the 800 point sell-off on Wednesday, investors appear deeply cautious about the renewed focus on the US-China trade war, with the 30-year US Treasury yield offering less than 2% for the first time in history.
Dow Jones Seesaws Between Triple-Digit Gains & Losses
As of 12:18 pm ET, the Dow Jones Industrial Average had gained 113.93 points or 0.45%. The Dow currently stands at 25,593.35 after dipping into the red earlier in the day.
Plunging yields continue to be a significant focus for traders, with potential for a global recession dominating headlines around the world. The Dow Jones is a critical indicator of global risk appetite, so it is no surprise that today’s rally stalled.
Positive data in the US and UK did demonstrate that the consumer continues to be in good health, but investors are struggling to see this holding up in a radically deteriorating macro environment.