US stocks bounce from day’s lowest levels

US stocks climbed from the lowest levels of the day following a rout sparked by investor angst over China’s real-estate sector and Federal Reserve tapering.

The S&P 500 was down about 2 per cent, after slumping as much as 2.9 per cent, the biggest oneday slide since October 2020. Treasuries gained along with the dollar before today’s Fed meeting, where policymakers are expected to start laying the groundwork for paring stimulus.

Yellen’s warning

“If the market is ripe for a correction, ‘tis the season for one,” said Anne Wickland, Portfolio Manager at Easterly Investment Partners LLC.

The Stoxx Europe 600 index dropped 1.7 per cent to a two-month low. Raw materials led the broad-based retreat as iron ore extended a slump below $100 a tonne and base metals declined after China stepped up restrictions on industrial activity.

Treasury Secretary Janet Yellen said the US government will run out of money to pay its bills sometime in October without action on the debt ceiling, warning of “economic catastrophe” unless lawmakers take the necessary steps.