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Wall Street drops on concerns over U.S.-China trade woes, rising inflation

Reuters 

By Medha Singh

(Reuters) - U.S. stocks slipped on Tuesday after the latest data indicated rising inflation and pushed up Treasury yields, while trade worries lingered with no signs of progress in U.S.-talks.

The and are still "very far apart" on resolving trade frictions, U.S. to said, as a second round of high-level talks were set to begin in

Adding to the trade woes, Mexico's said he does not expect to meet a deadline this Thursday to reach a new North American Free Trade Agreement that could be presented to the

U.S. increased a moderate 0.3 percent in April, compared with an upwardly revised 0.8 percent surge in March, as rising prices weighed on discretionary spending, the Commerce Department said.

However, the rise in core retail sales, which excluded automobiles, gasoline, building materials and food services, showed consumer spending appeared on track to accelerate after slowing sharply in the first quarter.

Following the data, benchmark yield hit 3.037 percent, a key breakout level, before gaining further to 3.058 percent, its highest since July 2011.

"When yields pop like they did this morning, that was unsettling and that came on top of the big run that markets just had," said Bruce Bittles, chief strategist for in Sarasota,

"Even from an overbought situation, the markets were a touch vulnerable and perhaps these rate rises was enough to trigger that."

Shares of retailers including J. C. Penney, and rose between 1.6 percent to 3.9 percent.

However, losses were broad based with ten of the 11 sectors in the red. The financial was the only sector posting a slight gain of 0.1 percent.

slipped 1.7 percent after the No.1 U.S. home missed Wall Street forecasts for sales at established stores.

Smaller rival was down 0.6 percent.

At 11:09 a.m. EDT the was down 198.21 points, or 0.80 percent, at 24,701.20, the 500 was down 19.73 points, or 0.72 percent, at 2,710.40 and the Composite was down 71.11 points, or 0.96 percent, at 7,340.20.

Declining issues outnumbered advancers for a 2.02-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.18-to-1 ratio on the

The S&P index recorded 3 new 52-week highs and 7 new lows, while the recorded 49 new highs and 34 new lows.

(Reporting by in Bengaluru; Editing by and Arun Koyyur)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, May 15 2018. 21:37 IST
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