S&P 500 Pares Biggest Loss Since 2011; Bonds Trim Rally

The Standard & Poor’s 500 Index pared its biggest intraday plunge since 2011 as small-cap shares rebounded amid speculation the selloff was overdone. Treasuries trimmed their largest rally in five years.

The S&P 500 slid 0.8 percent at 4 p.m. in New York, after earlier dropping 3 percent to briefly erase its gains for the year. The Russell 2000 Index of smaller companies jumped 1 percent. The rate on 10-year Treasuries fell 4 basis points to 2.16 percent, after dropping below 2 percent for the first time since June 2013. The Stoxx Europe 600 Index plunged 3.2 percent, leaving it down more than 10 percent from a June high. Commodities reached a five-year low as oil extended a rout. The Bloomberg Dollar Spot Index lost 0.7 percent and gold rose 0.9 percent.