Chinese negotiators may be willing to compromise with the U.S. on trade issues. The Hong Kong government announced plans to implement stimulus measures to help its sagging economy. The government also cut its growth forecast to potentially flat for the rest of the year.
The stock market took a huge hit in the previous session with the Dow plunging 800 points in its fourth-largest point drop ever to a two-month low. The Dow’s 3% drop was the worst this year.
As of Thursday morning, the curve hovered around the inversion point. The yield on the 30-year Treasury bond also fell to a new historic low. Bank stocks, which got slammed on Wednesday from the inverted yield curve, continued their slide on Thursday. Citigroup dropped 1.4% in premarket trading.
Investors remained on edge about the trade tensions between the U.S. and China. Trump in a tweet after the bell Wednesday linked the trade battle to the violent protests in Hong Kong, further deflecting trade issues.