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- Shares were hit hard Tuesday by fears of a slowdown in the global economy and by the fact that the United States would have canceled trade talks with China.
- On Monday, China recorded the weakest economic growth of its decade and South Korea recorded a sharp drop in exports.
- Also Monday, the International Monetary Fund has revised down its global growth outlook.
- Watch the US stock markets live.
US equity markets were under pressure on Tuesday, as worries over the slowdown in the global economy persisted and after a report was reported, the United States canceled trade talks with the United States. China.
The Dow Jones Industrial Average was down 375 points, or 1.5%, on Tuesday afternoon, while the S & P 500 and Nasdaq Composite were down 1.76%.
US markets were closed Monday on the occasion of Martin Luther King's day, but investors resumed work before seeing China announce that its economy had grown at its slowest pace for at least a decade and that South Korea announced a drop in exports compared to the same period last year.
A report released Monday by the National Bureau of Statistics of China said that the Chinese economy had recorded an annual growth of 6.4% in the fourth quarter, its lowest since the first quarter of 2009. The worry investors was compounded by the fact that South Korean exports, considered the "world economic canary in the coal mine", with a crater of 14.6% during the first 20 days of the year. Last year, they rose 1%.
Also Monday, the International Monetary Fund lowered its global growth forecast due to the US-China trade war. In its report, the IMF said it expects global growth of 3.5 percent this year and 3.6 percent in 2020, down from the previous forecast of 3.7 percent. and 3.8%.
The stockpile reported Monday afternoon following a Financial Times report that the US rejected a new round of trade talks with China due to lack of progress on two key issues. According to the report, China has refused to bet on "forced" technology transfers and "structural" reforms of its economy.
By looking at things at the corporate level, Arconic's shares have gone up by as much as 25% after the company's board announced it would no longer pursue a sale. The shares recovered some of their previous losses but lost more than 16%.
Netflix has slipped more than 3% despite his first Oscar nomination for best film.
And eBay grew more than 6% after Elliot Management of hedge fund manager Paul Singer announced a $ 1.4 billion equity investment and presented its five-step plan to create value. Elliott says the shares could be worth between $ 55 and $ 63, which is more than 75% to 100% higher than Tuesday's price.
On the commodities front, West Texas Intermediate crude oil plunged more than 3% to less than $ 52 a barrel at the low end of the session.
The 10-year US rate was down 3.7 basis points to 2.75%.
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