Investing.com – Wall Street reversed course on Wednesday, as investors turned to government bonds and safe-haven assets amid concerns over the U.S.-China trade conflict and its impact on global growth.
The Dow slumped 401 points or 1.5% by 9:40 AM ET (13:40 GMT), while the S&P 500 was down 34 points or 1.2% and the Nasdaq composite fell 78 points or 1.0%.
Yields on the benchmark United States 10-Year Treasury note fell to their lowest level since 2016, at 1.62%. Traders also flocked to gold, which reached a six-year high of $1,517.05 an ounce.
"There are two factors that are causing this reversal in market - rates are falling and gold is moving higher," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"Investors are very much concerned about the trade war and its expansion and that's certainly being manifested in the price of gold."
Meanwhile, U.S. President Donald Trump reiterated his criticism of the Federal Reserve for not doing enough to stimulate the economy, after three other countries' central banks cut rates Wednesday.
New Zealand’s central bank unexpectedly cut its benchmark policy rate to an all-time low, while the central banks of India and Thailand also cut rates due to slowing economic growth.
Trump tweeted that the Fed needs to “cut rates bigger and faster,” and that "our problem" was not China, but the U.S. central bank.
Walt Disney (NYSE:DIS) fell 5.6% after its earnings missed estimates due to the costs of integrating Fox’s entertainment assets, while Walgreens Boots Alliance (NASDAQ:WBA) dipped 0.5% after news that it is closing 200 U.S. stores.
CVS Health Corp (NYSE:CVS) rose 4.9% after it raised its full-year guidance, while Match (NASDAQ:MTCH) jumped 12.1% after the online dating company reported a jump in paying Tinder users.
In commodities, crude oil slumped 3.5% to $51.77 a barrel, within touching distance of a two-month low. The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 97.250
-Reuters contributed to this report