Stocks Halt Fed-Fueled Rally as Trade Fear Lingers: Markets Wrap
- A $4.5 trillion triple-witching gives investors another test
- Bank of England votes to hold rates as doves turn cautious
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A fresh bout of instability gripped the stock market as concern around the potential impacts of a trade war outweighed the latest housing and jobs data showing the world’s largest economy is still holding up.
Equities erased earlier gains. Not only does sentiment remain fragile just a week after the S&P 500 slipped into a correction, the market is set for a big test on Friday. That’s when an estimated $4.5 trillion of options contracts expire in an event ominously known as triple witching that often stokes volatility. In late hours, FedEx Corp. — an economic barometer — sank after cutting its profit outlook. Micron Technology Inc. gave an upbeat sales forecast. Nike Inc.’s results surpassed analysts’ expectations.