Stock indexes go on a wild ride to nowhere

U.S. stocks careened between big gains and modest losses Tuesday, but the result of that trip through the spin cycle belied all the action: Indexes ended the day nearly where they began.

A morning burst driven by hopes for U.S.-China trade talks gave way to losses triggered by falling bank stocks and the threat of a federal government shutdown.

The Standard & Poor’s 500 index slipped 0.94 of a point, or less than 0.1%, to 2,636.78. The Dow Jones industrial average fell 53.02, or 0.2%, to 24,370.24, and the Nasdaq composite rose 11.31, or 0.2%, to 7,031.83.

It’s the latest in a string of sharp turns in direction for the market, which has lurched up and mostly down since late September as investors recalibrate how worried they are about the global trade war, rising interest rates and expectations for a slowing economy.

Early in the morning, the S&P 500 jumped as much as 1.4% after China’s Commerce Ministry said U.S. Treasury Secretary Steven T. Mnuchin and Chinese Vice Premier Liu He spoke by phone about “the promotion of the next economic and trade consultations.” Media reports also said China agreed to reduce tariffs on U.S. autos. That raised hopes that the two countries can make progress on their trade dispute.

Indexes veered to losses later in the session, hurt by falling bank stocks. Financial stocks in the S&P 500 fell at least 1% for the fifth straight day.

Also weighing on the market was President Trump’s threat to shut down the government if Congress doesn’t provide money to build a wall at the U.S.-Mexico border.

Online clothing retailer Stitch Fix crashed 20.9% to $20.54 after it issued a disappointing outlook.

Benchmark U.S. crude oil rose 65 cents to $51.65 a barrel. Brent crude rose 0.4% to $60.20 a barrel.

The yield on the 10-year Treasury rose to 2.87% from 2.85%. The two-year yield rose to 2.75% from 2.73%. The gap between those two yields has been shrinking this year. When the 10-year yield falls below the two-year yield, investors see it as a precursor to a recession.