US stocks recovered and curtailed a rally in government bonds on Wednesday as investors pushed back against deepening concerns over the global growth after a trio of central banks slashed interest rates and fresh warning signs emerged over the health of the German economy.
The broader US stock market was down marginally in afternoon trade, fighting back from a drop of about 2 per cent soon after opening bell. The S&P 500 was down 0.2 per cent, while the Dow Jones Industrial Average shed 0.33 per cent. A turnround for tech stocks saw the Nasdaq Composite break into positive territory, up 0.2 per cent.
A rally in Treasuries, which have benefited both from expectations of looser monetary policy and their “haven” appeal, cooled. The yield on the benchmark 10-year note was down 6.4 basis points at 1.6735 per cent, but had dropped as much as 11 basis points earlier today to 1.593 per cent, its lowest level since October 2016.