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Dow reverses 500-point drop in volatile trading day for U.S. stocks

IMF chief: "No signs" of recession "in the near term"

It was a volatile Monday for investors in U.S. stocks as the major indexes swung from sharp losses in morning trading to modest gains in the afternoon, with energy and financial companies are falling and technology companies rising.

The Dow lost as much as 507 points in early trading before recouping its losses and turning slightly higher in the afternoon to add 30 points for the day to 24,421. The S&P 500 index rose 0.4 percent and the tech-heavy Nasdaq composite gained 0.8 percent.

Stocks in Europe and Asia fell Monday. The British pound dropped to its lowest level in more 18 months after the U.K. prime minister postponed a vote on its departure from the European Union. Oil resumed its sharp slide.

U.S. indexes have been lurching up and down since October, mostly down, and the S&P 500 plunged 4.6 percent last week for its biggest loss in more than eight months, as investors felt the U.S. and China are still nowhere close to ending their trade dispute.

Volatility has been high not only week to week but also minute to minute. The S&P 500 zoomed from a gain of 0.2 percent to a loss of 1.8 percent Monday morning before reversing course again.

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Investors are questioning the strength of U.S. and global economic growth after a flurry of so-so economic indicators last week. The yield between the 3-year and the 5-year Treasury note flipped, which many investors take as an indication a recession is on its way.

Uncertainty over U.S.-China trade relations isn't helping. Even as the two nations declared a temporary truce in the tariff wars last week, President Donald Trump called himself "Tariff Man" in a tweet and a top executive from Chinese telecom giant Huawei was arrested in Canada at the request of U.S. authorities.

Apple suffered a setback shortly before the market opened Monday when a Chinese court banned sales of most iPhone models in the country as part of an ongoing legal battle with chipmaker Qualcomm, which accuses Apple of infringing its intellectual property. Apple shares slid 2.4 percent in early trading.

Brexit drama buffeted European markets, as U.K. Prime Minister Theresa May canceled a long-awaited Parliamentary vote on a deal for the U.K. to exit the European Union. The British pound lost 1.5 percent against the dollar, dropping to $1.2538, its lowest value in 20 months.

International markets could be roiled if investors believe Britain will leave the EU without a deal—a prospect that economists say would lead to a recession. European stock markets fell Monday, with the stock index for export-focused Germany sliding 1.7 percent.

-- CBS News' Irina Ivanova and Alain Sherter contributed reporting.

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