Rebound narrows stock losses from tariff fears, China slump

A turbulent day on Wall Street ended Tuesday with stocks climbing nearly all of the way out of a steep, broad sell-off that at one point erased more than 500 points from the Dow Jones Industrial Average.

Even with the late-afternoon rebound, stocks extended the market’s recent string of declines, giving the benchmark S&P 500 index its fifthstraight loss. Bond prices rose, sending yields lower, as investors sought out safer investments.

Hong Kong’s Hang Seng index sank 3.1 percent. European markets also closed sharply lower.

The latest selling came as investors grew unsettled over slowing economic growth in China and increased signs that President Donald Trump’s trade policies are starting to weigh on corporate earnings.

“That’s the story, it’s not the current quarter results, but the commentary going forward, the impact of tariffs and what that means in terms of costs,” said Willie Delwiche, an investment strategist at Baird. “If tariffs didn’t come up in earnings calls and commentary, then maybe you could say we were moving away from that, but the opposite is happening.”

The S&P 500 fell 15.19 points, or

0.6 percent, to 2,740.69. The Dow lost 125.98 points, or 0.5 percent, to 25,191.43. The average had been down more than 540 points.

The Nasdaq slid 31.09 points, or 0.4 percent, to 7,437.54. The Russell 2000 index gave up 12.91 points, or 0.8 percent, to 1,526.59.