USA stocks hold near 14-month low on a volatile day

USA stocks hold near 14-month low on a volatile day

The Dow Jones Industrial Average rose 82.66 points, or 0.35 percent, to 23,675.64, the S&P 500 gained 0.22 point, or 0.01 percent, to 2,546.16 and the Nasdaq Composite added 30.18 points, or 0.45 percent, to 6,783.91. The Dow Jones Industrial Average was also off 2.1% and the Nasdaq, down 2.3%.

The S&P 500 is down 53.79 points, or 2.1 percent. 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.

US market indexes rebounded slightly on Tuesday after concerns of bear market losses and correction territory returns on 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.

Both major oil benchmarks have dropped to 15-month lows on the day, as fears of market oversupply help subdue the commodity. The index is 21 percent below the peak it set in August, meaning it's in what Wall Street calls a "bear market". Energy stocks plummeted along with crude oil, which reached its lowest price since August 2017. USA stocks were poised to make solid gains with Dow futures and the broader S&P 500 futures up 0.6 percent.

Oil prices were rocked Monday, with benchmark West Texas Intermediate down almost 4 percent, resting below the critical $50 per barrel threshold.

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The selloff continued on the Asian markets, with Japan's Nikkei slumping by 1.8 percent on Tuesday. The dollar index, tracking it against six major peers, fell 0.09 percent, with the euro up 0.14 percent to $1.1362.

In addition to Navarro, respected Wall Street figures have criticized the Fed in the last day, urging the central bank to not raise interest rates when it meets Wednesday.

ANALYST TAKE: "A dovish hike is widely expected today and increases next year reduced to one or two, although I wonder whether they may hold off and surprise the markets", said Craig Erlam, senior market analyst at OANDA. Higher rates can slow economic growth, and that's something investors have been worrying about as China and Europe have suggested growth is slowing, and the USA economy is also expected to cool off in 2019.

The market is in the throes of a slow-growth narrative that is taking over sentiment.

Benchmark U.S. crude plunged 7.3 percent to $46.24 a barrel in NY. The yield on the 10-year Treasury dipped to 2.82 percent from 2.85 percent late Monday.

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