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 world’s two largest economies, the United States and China imposed new tariffs on each other’s goods. In addition, weak manufacturing data also affected the stocks.
The Dow Jones Industrial Average fell 285.26 points, or 1.1%, at 26,118.02, and the S&P 500 fell 0.7% to 2,906.27. The Nasdaq Composite 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.
“That adds to the concerns on whether there is a viable path for negotiation,” Quincy Krosby, chief market strategist at Prudential Financial said. “The market is vulnerable to these moves on misery and optimism regarding the talks.”
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%.
“September will very likely set the tone for the remainder of this year and perhaps then some,” 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