US stocks claw back majority of big losses

By FXStreet US stocks continue have been correlated to the activity in the commodities sector and specifically oil.

Oil remains turbulent and is the driving force behind markets ate the moment. Oil plunged to $28 a barrel on Tuesday after starting the day around $30. In tangent, Wall Street stocks were all over the place on Tuesday. Heavy losses were pared by the close as stocks regained its traction to cut losses as investors snap up bargains.

A rally in materials and health-care stocks helped the main indexes reverse earlier losses. The Dow was down 0.06 percent, to 16,017.73, the S&P 500 – 0.05 percent, to 1,852.47 and the Nasdaq had dropped 0.35 percent, to 4,268.76.

Overall, investors are on the sidelines, but there maybe there for some time to come if oil is going to continue lower while the S&P 500 has already dropped close to 9% this year alone, gold is back over Oct 2015 highs and the Yen is marking new territory below 116.00 key level and scored a low of 114.20.

Yellen testifies tomorrow and any sounding caution will be enough to spark further fears should the Fed not be able to commit to their previous …read more

Source:: FX Street