Market takes a wild ride, ends about where it starts

Stocks careened between big gains and modest losses on Tuesday before indexes ended the day mixed, the latest dizzying run for a market that’s been dominated by them in recent months.

A morning burst driven by hopes for U.S.China trade talks gave way to losses from falling bank stocks and the threat of a federal government shutdown. Indexes ended the day nearly where they began.

The S&P 500 dipped by 0.94 points to 2,636.78, while the Dow Jones industrial average fell 53.02 to 24,370.24, and the Nasdaq composite rose 11.31 to 7,031.83. Slightly more stocks fell on the New York Stock Exchange than rose.

It’s the latest in a series 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.

The whipsaw action is a nerve-wracking departure from much of the past decade, when investors enjoyed a largely calm, rising market, and analysts are debating how big a turning point it is for the longest bull market on record.

Jon Adams, senior investment strategist at BMO Global Asset Management, is more optimistic that stocks can keep rising. But he says investors should get used to this increase in volatility, which follows a calmer-than-usual run.

Behind that volatility is many forces pushing and pulling the market in different directions, and how optimistic or pessimistic investors are feeling about them on a given day. Several were on display Tuesday.

The S&P 500 jumped 1.4 percent early after China’s Commerce Ministry said that U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He spoke by phone about “the promotion of the next economic and trade consultations.”

Media reports also said that China agreed to reduce tariffs on U.S. autos. That raised hopes that the two countries can make progress on their trade dispute. Investors worry weaker global trade would dent economic growth around the world and corporate profits.

Indexes veered to losses in the afternoon, hurt by falling bank stocks. Financial stocks in the S&P 500 fell at least 1 percent 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 Mexican border.

Germany’s DAX was up 1.5 percent, and France’s CAC 40 rose 1.3 percent. Britain’s FTSE 100 gained 1.3 percent.

In Asia, Japan’s Nikkei 225, South Korea’s Kospi and Hong Kong’s Hang Seng all fell slightly.