Investing.com – U.S. stocks suffered their worst losses since late August on Wednesday as worries built up about slowing global growth.
The selloff in the United States followed a nasty slump in Europe, with indexes in Germany, the U.K. and France falling around 3%. The violence of the slump boosted expectations the Federal Reserve will cut interest rates later this month.
The S&P 500 was down 1.79%. The Dow fell 1.86% and the Nasdaq Composite was down 1.56%.
The Dow was off as many as 598 points before bargain hunters stepped in and trimmed the losses nearly down to about 400 points before late selling set in again.Still, the S&P and Dow have fallen about 3% in two days with the Nasdaq dropping 2.7%.
Only one of the 30 Dow stocks was higher. Johnson&Johnson (NYSE:JNJ) moved up after settling an opiod suit in Ohio for $20 million.
Financial, energy, industrials and consumer staple stocks all fell. An exception was homebuilder Lennar (NYSE:LEN), up after easily beating expectation for third-quarter earnings.
The selloff helped push crude oil and oil stocks lower. Gold and other precious metal prices moved higher as investors sought safety. They also sought safety in bonds. The 10-Year Treasury yield fell to 1.601% from Tuesday's 1.644%.