Still, stocks fell as investors turned pessimistic that any resolution will be forthcoming in the near future, even as negotiators from the USA and China are supposed to meet in September to continue trade talks.
Wall Street dropped on Tuesday as investors anxious about global growth prospects after data showed US factory activity contracted in August for the first time since 2016 and the USA and China imposed new tariffs on each other over the weekend.
How are the markets faring? The S&P 500 finished 0.7% lower and the Nasdaq Composite fell 1.1%. The Nasdaq composite fell 1.1% to 7,874.16.
On Wall Street, the future for the benchmark Standard & Poor's 500 index was off 0.6% with trading due to resume after a three-day weekend.
Boeing dropped 2.7% after United Airlines and American Airlines took steps to delay until December the expected return of the 737 Max jets.
However, the major indexes logged their first losing month since May - and their second losing month of 2019.
The latest escalation in the lingering trade war has been expected since early August when the US announced plans for the new tariff measures, prompting China to retaliate.
The Institute for Supply Management, an association of purchasing managers, said its manufacturing index slid to a 3½-year low of 49.1 last month from July's 51.2. A level below 50 indicates that activity at America's factories contracted. The Dow lost 285.26 points, or 1.1%, to 26,118.02.
Technology companies led stocks broadly lower as disappointing economic data and the latest escalation in the U.S. Though the reading isn't enough to signal a coming recession, as manufacturing PMIs usually hit the low 40s during an economic contraction, "the report will undoubtedly add to fears that more weakness is ahead".
A global softening in demand, aggravated by the U.S. -China trade war, which has rattled markets for months and weighed on world economies.
Global stock markets were mostly lower Tuesday amid revived jitters over U.S. Bloomberg News (link) also reported on Monday that the parties are struggling to agree on what to discuss in trade talks.
In tweets Tuesday, President Donald Trump said negotiations with China were going well, then threatened to crack down even harder on the world's second-largest economy if he wins reelection in 2020.Читайте также: Nessie - big eel best guess
The drop comes after the Trump administration implemented 15% tariffs of $110 billion on Chinese-made goods during Labor Day weekend.
The British pound fell as Prime Minister Boris Johnson's office said he would call an early election if his opponents pass legislation that would block his plans to leave the European Union by an October 31 deadline.
"The trend is not in the right direction and it was worse than expected", Warne said.
Which stocks are in focus?
Some notable stocks that saw a sharp drop include Goldman Sachs (GS), which fell 2.86%, and Uber (UBER), which dropped 3.98%, by 11:55 a.m. ET.
Chip stocks, which are seen as sensitive to trade tensions, were also under pressure, with Dow constituent Intel Corp. The Philadelphia Semiconductor index dropped 1.8%. Apple has also lost 1.5%.
Shares of Concho Resources Inc.
This recent market shake-up, if nothing at all, shows that there is a need to considerably manage the trade tensions between both countries, to prevent further deterioration.
The yield on the 10-year U.S. Treasury note fell to 1.49% in Tuesday trade.
Gold prices strengthened $28.00 to $1,557.40 U.S.an ounce.
Benchmarks in Shanghai, Tokyo and Hong Kong advanced.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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