Stocks reversed their early gains to plunge downward today, with the Dow dropping as much as 324 points, the Wall Street Journal reports, after being up 140 earlier in the morning. The S&P was down 1.9%, thanks largely to a 6% slide in its consumer-staples sector, while the Nasdaq fell 2.8%. All rebounded slightly before noon but remained in negative territory.
“The question of whether or not there is going to be a recession is moot at this point,” said one strategist. “It's just a matter of saving yourself some pain in your portfolio of stocks, bonds, and everything else.” Credit markets showed signs of life, with interbank lending rates improving. The overnight rate tumbled to 1.9375%, bringing it closer to the Fed’s 1.5% target.