Stocks slashed steep losses on Thursday after news broke that the Federal Reserve could tighten monetary policy at a slower pace than previously expected. The Wall Street Journal reported the central bank is considering whether to signal a wait-and-see approach to rate hikes at its upcoming meeting next month. The report said Fed officials do not know what their next move on rates will be after December. Stocks fell sharply earlier in the session as continuing fears over US-China trade relations and concern over a possible economic slowdown kept investors on edge. The sell-off began with a mysterious overnight plunge in equity futures that caused the CME group to halt trading in several intervals.
