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Nation & World

Dow drops nearly 550 points Thursday

Dive sends its two-day loss total to nearly 1,400 points

Reuters

Final numbers for the Dow Jones industrial average are displayed after the close of trading on the floor of the New York Stock Exchange on Thursday.
Reuters Final numbers for the Dow Jones industrial average are displayed after the close of trading on the floor of the New York Stock Exchange on Thursday.
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BEIJING — U.S. stock markets suffered deeper losses Thursday, following on a global rout as investors lost their nerve over rising U.S. interest rates and fresh worries about an economic slowdown.

Concerns about U.S.-China ties weighed heavily, too.

U.S. markets rebounded briefly after it was announced that President Donald Trump would meet with Chinese leader Xi Jinping at next month’s G-20 summit in Buenos Aires to discuss the intensifying trade conflict.

The Dow Jones industrial average ended the day down 2.1 percent, or 546 points, to 25,052. It pushed the two-day loss to nearly 1,400 points.

The broad-index Standard & Poor’s 500-stock index was off 2 percent, to 2,728. The tech-heavy Nasdaq notched its second day of trouble with a 1.3 percent loss, landing at 7,329.

The markets landed in the red despite a government report that showed consumer prices rose 0.1 percent last month, less than expected.

Ivan Feinseth, an analyst with Tigress Financial, was optimistic about the strength of the economy and called the sell-off an “incredible buying opportunity.”

The current panic might be quelled, he said, by de-escalation in the U.S. trade war with China. It also could bolster faith in the tech sector, which was pummeled in the past two days.

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“Any kind of softening of the tensions with China would be a huge catalyst for the market,” Feinseth said.

After the Dow dropped 832 points Wednesday, one of the worst sell-offs since February, Trump strongly criticized the Fed for tightening rates, again signaling that he wanted interest rates to remain low.

“The Fed is making a mistake. They’re so tight. I think the Fed has gone crazy,” he told reporters while traveling in Pennsylvania on Wednesday.

“It’s a correction that we’ve been waiting for, for a long time. But I really disagree with what the Fed is doing, OK?”

Early Thursday, National Economic Council Director Larry Kudlow in a news conference heralded the administration’s economic policies and assured the public that “the war on business is over.”

“We are the hottest economy in the world right now,” Kudlow said. “With all due respect, I don’t think this is anything resembling a sugar high.”

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