Stocks Decline on U.S.-China Trade Escalations and Weak Manufacturing Data
Stocks decline on U.S.-China trade escalations and weak manufacturing data. On Tuesday, stocks dropped to begin September after the worldâ€™s two largest economies, the United States and China imposed new tariffs on each otherâ€™s goods. In addition, weak manufacturing data also affected the stocks.
TheÂ Dow Jones Industrial AverageÂ fell 285.26 points, or 1.1%, at 26,118.02, and the S&P 500Â fell 0.7% to 2,906.27. The Nasdaq CompositeÂ lost 1.1% to close the day at 7,874.16.
On Sunday, the U.S. imposed 15% tariffs on several Chinese products and China imposed on U.S. products from Sept. 1.
â€œThat adds to the concerns on whether there is a viable path for negotiation,â€ Quincy Krosby, chief market strategist at Prudential Financial said. â€œThe market is vulnerable to these moves on misery and optimism regarding the talks.â€
The SPDR S&P Retail ETF (XRT) fell 1.5% as Signet Jewelers lost 9.5% and Guess declined 8.1%.
Chip manufacturers Nvidia declined 2% and Skyworks Solutions fell 1.5%. Boeing and Caterpillar both declined more than 1.6%. Apple closed 1.5% lower.
The 30-year Treasury bond yield rose 1.95%. The 10-year note yield declined to 1.47%. Bank of America fell 1.7%, J.P. Morgan Chase slid 1.2%, and Citigroup tumbled 1.5%.
â€œSeptember will very likely set the tone for the remainder of this year and perhaps then some,â€ Gregory Faranello, head of U.S. rates at AmeriVet Securities said.
Last month, the Dow lost 1.7% and S&P 500 slid 1.8%. The Nasdaq dropped 2.6% in the month.
By: Apurva Nagare