U.S. stocks opened with substantial losses Wednesday, with investors shunning equities and other assets perceived as risky for havens like Treasurys and gold amid rising worries about global growth prospects.
The Dow Jones Industrial Average was down 412 points or 1.6%, at 25,617, while the S&P fell 40 points, or 1.4%, to 2,841. The Nasdaq Composite dropped 1.3% to 7,729. Stocks sank as U.S. Treasurys posted a sharp rally, sending yields tumbling, following bigger-than-expected rate cuts by central banks in New Zealand and India and an unexpected easing by Thailand's central bank.
The moves underscored worries about a global growth slowdown in the face of a deepening U.S.-China trade war and also underlined concerns about the prospect of a global currency war marked by central banks racing to cut rates in an effort to gain an advantage from a weaker currency.