>> A dramatic comeback on Wall Street left the Dow down by fewer than 100 points after plunging earlier in the session on uncertainty over US China trade relations, economic slowdown worries, and a sharp drop in oil prices. I'm Conway Guinness in New York. There is a thought on Wall Street that there may have been an over-reaction to the arrest of a top executive from Chinese tech giant Huawei.
Now, there were rampant fears, which began by the way in Asia, that her arrest in Canada for extradition to the US would threaten the 90-day trade war truce between the US and China. But as those fears let up somewhat, investors started bargain hunting, buying shares of Netflix and Amazon, which left the NASDAQ higher.
Worries tariffs are already causing global economic slowdown, sending investors running to the perceived safety of the bond market. US government bond yields on the long end falling faster than the shorter end, threatening what is called a yield curve inversion. History shows when that happens it's a signal a recession is on the way.
Citigroup, bearing the brunt of those worries, fell sharply. But some on Wall Street think the federal reserve will scale back the number of rate hikes. Home building stocks rallied on those hopes. Oil, however, remained a market concern. OPEC members meeting in Vienna, waiting on Russia to sign off on a smaller than expected in oil production.
Oil prices dropped as a result, and so did shares in oil companies like ExxonMobil. Markets now look ahead to the all important monthly jobs report released Friday for any signs the US economy is cooling off.