U.S. stocks wobble, grow as China’s yuan weakens
new york» Major indexes in the U.S. started the day with steep losses Wednesday as another drop in China’s currency shook markets around the world.
Investors sold shares in Tiffany, Yum! Brands and other companies with significant sales in China. By the afternoon the worst of it was over, and the broader market spent the rest of the day climbing back to where it started.
“Clearly, emotions are running high today,” said Jack Ablin, chief investment officer at BMO Private Bank. Ablin said the market’s sudden turns reflect the uncertainty surrounding China’s actions.
“It’s really about a fear of the unknown,” he said.
The Standard & Poor’s 500 index finished with a gain of 1.98 points, or 0.1 percent, at 2,086.05.
The Dow Jones industrial average lost 0.33 of a point to close at 17,402.51, while the Nasdaq composite inched up 7.60 points, or 0.2 percent, to 5,044.39.
The news from China battered European markets for a second day running. Germany’s DAX dropped 3.3 percent, France’s CAC 40 dropped 3.4 percent, while Britain’s FTSE 100 lost 1.4 percent.
Precious and industrial metals ended broadly higher. Gold added $15.90 to $1,123.60 an ounce, silver added 19 cents to $15.48 an ounce and copper crept up 2 cents to $2.35 a pound. Crude oil rose 22 cents to close at $43.30 a barrel.
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