U.S. Stock index futures had a mixed start to the trading day amidst a number of company reports.
This is the busiest week of the revenue season, with more than 1
Shares have risen sharply, with the Dow recording the biggest drop of 500 points on Tuesday. At session lows, the Dow fell 548.62 points, while the S & P 500 and Nasdaq both lost more than 2 percent on Tuesday. The comeback was led by McDonald's, who gained more than 6 percent and Procter & Gamble up 0.65 percent on strong gains.
The major indices, however, are falling sharply for the month. By the close of trading on Tuesday they have fallen in October by at least 4.8 percent.
Several factors have led to market foreclosure this week – disappointment over profit, bizarre Italian and European budget debates, criticism of Saudi Arabia's oil power over the murder of a dissident journalist and, last but not least, concern that the world growth loses power.
Growth concerns were highlighted by the International Monetary Fund, which recently reduced its economic forecasts, citing trade wars and capital flight from emerging economies. Recent European PMI surveys underlined this view and showed the growth of the German private sector at the slowest in three years.
There are also signs that economic and earnings growth in the US is slowing, partly as a result of tax cuts – Wall Street suffered. Some companies, including industrial giant Caterpillar, which is considered to be the economic growth indicator, held or throttled earnings forecasts. The shares reduced losses close to trading and closed only half a percent lower.
Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo, predicted "further bouts of mini-panic" until November 6 US midterm elections. But he added that "the mood of last week has not been fully eroded by Wall Street shows."
– Reuters contributed to this report.