Stocks rebound to recover heavy Thursday losses

U.S. stocks rallied into the end of trading Thursday, erasing a substantial morning slide to close with only minor losses.

The Dow Jones Industrial Average closed with a 79-point loss Thursday after plunging almost 800 points earlier that day. The S&P 500 fell 0.15 percent while the Nasdaq composite closed with a 0.4-percent gain after both fell sharply Thursday morning.

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Stocks sunk soon after Thursday’s opening, which analysts pinned on fears of growing U.S.-China trade tensions and an impending economic slowdown.

The market recovered slowly throughout the day Thursday, shooting higher after The Wall Street Journal reported that the Federal Reserve may soon lean toward a pause in planned interest rate hikes.

Stocks have taken heavy losses throughout the end of 2018, due in part to rising interest rates triggered by Fed rate hikes. Rising borrowing costs tend to narrow corporate profit margins and slow stock market activity.