US stocks closed sharply higher Wednesday, in the latest example of heavy intraday volatility as investors continued to suss out the likelihood of, or the potential impact from, a trade war between the United States and China. Eastern time. The Standard & Poor's 500 index fell 64 points, or 2.8 percent, while the Nasdaq also lost 2.6 percent. The blue chip Dow Jones Industrial Average closed at 24103.11, up 2.4%.
The Nasdaq composite dropped 193.33 points, or 2.7 percent, to 6,870.12.
The Russell 2000 index of smaller-company stocks jumped 19.62 points, or 1.3 percent, to 1,512.15.
The S&P opened and stayed below its 200-day moving average, a key support level watched by traders technical analysts, while the Dow held just above that mark.
Japan's benchmark Nikkei 225 dipped 0.1 percent to 21,271.03 and South Korea's Kospi slipped 0.4 percent to 2,432.83.
Saudi oil tanker hit in Houthi attack off Yemen
Saudi Arabia and its allies launched a military intervention in Yemen in 2015 with the aim of rolling back the Houthi rebels. The 2018 Humanitarian Response Plan for Yemen requires $2.96 billion to reach more than 13 million people across the country.
Facebook, which has experienced a rash of defections by users since becoming embroiled in a scandal over data privacy last month, saw its shares drop 2.7 percent. Major indexes all rose by more than 1% (http://www.marketwatch.com/story/us-stocks-poised-for-a-higher-but-nervous-start-after-tech-driven-selloff-2018-04-03) on Tuesday, rebounding partially from Monday's sharp selloff.
China bumped tariffs by up to 25 percent on 128 USA products, from frozen pork and wine to certain fruits and nuts, in response to US duties on imports of aluminum and steel. "And we're in a bull market", said Cote. Up in Toronto, Canadian stocks took a hit, with the TSX losing 91.2 points in afternoon trade to 15122.
By the end of the day Monday, the Dow slightly recovered, closing down 458 points for the day.
U.S. stocks rallied in afternoon trading, reaching positive territory after plummeting earlier amid reports that China is planning to retaliate against the United States in an escalating trade conflict that has investors around the world on edge.
Amazon fell another $70.84, or 4.9 percent, to $1,376.50. Instead, it could flow into more traditional stocks in the Dow Jones Industrial Average.
Investors may have also been comforted when Larry Kudlow, head of President Trump's National Economic Council, said the administration was not angling for a trade war. Brent crude, used to price worldwide oils, slid $1.52, or 2.2 percent, to $67.82 a barrel in London. Yield on 10-year Treasury note rose after dropping to two-month lows on Monday, boosted by safety buying as stocks tumbled.