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Traders breathe sigh of relief as markets bounce back after 'mini flash crash'

Stocks suffered one of their worst days ever yesterday.

Updated 5.46 pm

Source: CNBC/YouTube

WALL STREET STOCKS appeared headed for another wild ride today, opening sharply lower but working their way into positive territory shortly thereafter.

About 25 minutes into trading, the Dow Jones Industrial Average had recovered to 24,551.76, up 0.9%.

The broad-based S&P 500 gained 0.7% to 2,668.43, while the tech-rich Nasdaq Composite Index advanced 0.7% to 7,017.87.

US stocks suffered one of their worst days ever Monday, with the Dow dropping by record 1,175 points, which some observers likened to a “,” sparked mainly by unease over the prospects for higher interest rates.

The turmoil spread to global markets overnight, with Japan’s Nikkei dropping nearly 5% and bourses in London, Paris and Frankfurt all down more than 2%.

After two days of steep declines, US stocks again opened sharply lower, with the Dow quickly losing more than 500 points within a few seconds. But stocks bounced back after that, as investors took advantage of the low prices.

Financial Markets Wall Street Trader Michael Milano works on the floor of the NYSE. Source: Richard Drew/PA Images

Until the last week or so, US stocks have been propelled for more than a year by the confidence of investors who have stepped in to buy whenever there was a retreat in the market.

The price movements after the open suggested the tendency still existed among some investors, but rising volatility makes the market’s course from here anybody’s guess.

Data released before the open showed the US trade deficit rose 12.1 percent from 2016 to $566 billion, driven higher by rising crude imports and a ballooning goods deficit with China.

© – AFP, 2017

Read: Wall Street just took a huge plunge and traders are trying to stay calm

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