US stocks plummeted in early trading Tuesday in the wake of precipitous declines around the world, but Wall Street recovered much of those losses by the closing bell.
In the first minutes of trading, the Dow Jones Industrial Average was off in excess of 3%, or more than 400 points. The blue-chip index lost 128.11 points, or 1.06%, to close at 11,971.19. It was the fifth straight day of losses in New York. Shortly before trading started, the rate-setting US Federal Reserve Board slashed its key interest rate by 0.75 percentage points in an attempt to bolster the sputtering US economy. In a statement, the Fed justified its action “in view of a weakening of the economic outlook and increasing downside risks to growth.” The broad-based Standard & Poor’s 500 Index fell 14.69 points, or 1.11%, to 1,310.5. The technology-heavy Nasdaq Composite Index dropped 47.75 points, or 2.04%, to 2,292.27. The US currency edged lower against the euro to €68.322 cents from €68.44 cents on Friday. The dollar dipped against the Japanese currency to ¥106.43 from ¥106.77 on Friday. Gold rose by $11.50 to $893.20 per fine ounce. (m&c.com)