The reversal was the blue-chip index’s most stunning — between the Dow’s DJIA, -1.01% 11:30 a.m. Eastern Time intraday nadir at 24,242.22, off 785 points, to its eventual close, off just 79.40 points lower, or 0.3% — since April 4, according to Dow Jones Market Data.
The embattled Nasdaq Composite Index COMP, -1.27% recorded a similarly massive rebound, ending Thursday with a respectable advance, up 0.4%, after sinking as much as 2.4%, or 174 points. It was also the technology-laden’s benchmark’s widest swing from an intraday peak to trough since early April.
The stomach-churning gyrations have become more commonplace in stocks, but Thursday’s move may leave more questions about whether equity benchmarks have put in a bottom after the day’s declines briefly erased the year-to-date gains from the S&P 500 index SPX, -0.96% and the Dow.
Early-session declines were attributed to news of the Dec. 1 arrest of Chinese telecommunications giant Huawei Technologies CFO Meng Wanzhou, which was seen as fresh sign of the intensification of tariff clashes between Beijing and Washington.
However, markets appeared to pare throughout the latter part of the session, with news from the Wall Street Journal perhaps providing some solace to bulls. The report indicated that the Federal Reserve were becoming less assured of its intent to aggressively increase interest rates. The Federal Open Market Committee is slated to convene at a Dec. 18-19 meeting, where it is expected to lift interest rates a fourth time in 2018.
Worries that the Fed’s monetary policy is hurting the economy and the market, combined with fears about the impact of worsening relations between the U.S. and China, have been among the most significant sources of anxiety for Wall Street investors this year.