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US stocks tumble amid trade war fears

AFP  |  New York 

Losses on Wall Street deepened Friday afternoon amid anxiety over the US-trade clash as the sent conflicting messages on trade policy.

The Dow Jones Industrial Average was down 2.3 per cent, or close to 600 points, at 24,364.52 around 1915 GMT.

The broad-based S&P 500 also dropped 2.3 per cent to 2,633.25, while the tech-rich slumped 2.8 percent to 6,986.27.

Analysts said the declines reflected anxiety after the US-initiated arrest of a top Chinese executive was seen as exacerbating the US-clash.

"The market is kind of falling back into our interpretation of where we are in the US-trade war," said Art Hogan, at FBR.

The arrest dampened expectations that the US and China could quickly hash out a deal following a tariff ceasefire announced last weekend, Hogan added.

US Donald Trump, only days after announcing a tariff ceasefire with Chinese leader Xi Jinping, said on that talks with China are "going very well!"

But investors were unnerved by Peter Navarro, a hawk on China, who told that Trump would "simply raise" tariffs on USD 200 billion worth of Chinese goods if talks fail.

If short of meeting US goals, "we have a that's going to stand up to that for once," Navarro said.

Earlier, the Labor Department reported that the US economy added 155,000 jobs in November, below expectations, even while unemployment held steady at 3.7 percent.

A survey of US chief executives released by the Business Roundtable showed a decline in confidence for the third straight quarter amid trade disputes, although the group said the index remained high by historical standards.

Most sectors were sharply lower on Wall Street, with financials, industrials and technology losing two percent or more.

Losses among were comparatively small after an OPEC deal boosted But shares of Chevron, and others that had been strongly positive earlier in the session, also slipped into the red amid the sell-off.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, December 08 2018. 01:05 IST
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