· The Dow Jones Industrial Average fell for the first time in four sessions on Tuesday, paring some of the strong gains from the previous session as recession fears lingered.
The 30-stock index closed 173.35 points lower, or 0.7%, at 25,962.44. The S&P 500 pulled back 0.8% to end the day at 2,900.51. The Nasdaq Composite slid 0.7% to 7,948.56. The major indexes fell to their session lows in the final minutes of the trading session as Treasury yields declined as well.
· The White House stepped in the ongoing debate over whether the U.S. economy will soon enter into recession mode, highlighting the strength in the U.S. economy.
Nonetheless, The Washington Post and New York Times both reported the Trump administration was discussing a cut to payroll taxes as a way to mitigate slower economic growth. A White House official pushed back on the reports, saying cutting payroll taxes “is not something under consideration at this time. ” Trump later said on Tuesday that payroll taxes are a matter he had been thinking about.
Traders have been worried about the global economy as the U.S. and China remain engaged in a trade war. Wall Street got a reprieve on that front on Monday after U.S. Commerce Secretary Wilbur Ross announced that it was extending by another 90 days a temporary reprieve for Huawei to do business with American firms.
Traders also looked ahead to the release of the Federal Reserve’s minutes from its July meeting. The central bank cut rates by 25 basis points last month, citing “global developments ” and “muted inflation.” The Fed minutes are scheduled for release Wednesday at 2 p.m. ET.
· European stocks closed lower on Tuesday as worries heightened over Italy's mounting political crisis.
The pan-European Stoxx 600 closed provisionally down around 0.7%, with the majority of sectors and major bourses in negative territory.
· Asia markets fell Wednesday morning after U.S. markets pulled back overnight on recession fears.
Japan’s Nikkei 225 dropped 0.57% while the Topix index declined 0.79%.
The Japanese yen traded at 106.37 against the dollar, weakening from levels below 106 in the previous week.
Automakers declined as shares of Nissan dropped 1.37%, Mazda Motor fell 2.41% and Toyota was down 0.19%. Tech conglomerate SoftBank Group slipped 2.57% while banking and financial stocks also traded lower.
In South Korea, the Kospi index was down 0.11%.
Australia’s ASX 200 fell 0.76% with the heavily-weighted financial subindex down 0.7%.
Reference: CNBC
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