Street staged yet another late-day reversal yesterday to end lower as news suggesting China was reassessing its Eurozone debt holdings pushed investors into profit-taking mode. The Dow closed below 10,000 for the first time since 8 February. The late turnaround in stocks showing investor psyche remains fragile, and investors are inclined to sell strength in this volatile rumor-driven market.
The Financial Times said representatives of China’s State Administration of Foreign Exchange, which manages the reserves under the country’s central bank, has been meeting with foreign bankers in Beijing to discuss the issue.
The S&P 500 has fallen more than 10 per cent from a closing high on 23 April, putting the benchmark index into correction territory. The Dow Jones industrial average dropped 0.69 per cent, to 9,974.45. The Standard & Poor’s 500 Index fell 6.08 points, or 0.57 per cent, to 1,067.95. The Nasdaq Composite Index .lost 15.07 points, or 0.68 per cent, to 2,195.88.