You are here: Home » Reuters » News
Business Standard

Wall St snaps 4-day rally; latest trade threat weighs

Reuters  |  NEW YORK 

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks fell on Wednesday, breaking a four-session streak of gains after Washington's threat to impose tariffs on an additional $200 billion worth of Chinese goods fanned trade war fears, while a sharp drop in hit

responded to U.S. Donald Trump's threats by accusing the of bullying and warned that it would hit back.

Industrial names including , 3M and , which have been among the hardest hit by the recent trade dispute, were among the Dow's biggest drags.

Materials <.SPLRCM>, down 1.7 percent, was another big negative influence on the market, with down 3.9 percent as copper prices hit their lowest in about a year.

Investors said trade war worries may slip to the background as investors begin to focus more closely on second-quarter earnings over the coming weeks. Results from and other big banks are due Friday.

"The trade situation is worrisome but nothing more is going to happen right away. This story may recede in people's consciousness while current stories capture people's interests, particularly earnings," said John Carey, at in

"People are looking for some fairly strong earnings, and there's certainly potential for disappointment."

Analysts are forecasting 500 companies' earnings grew about 21 percent in the second quarter from a year earlier, according to data.

Also pressuring the market Wednesday, the 500 fell 2.2 percent, leading sector declines. U.S. settled down 5 percent on the trade dispute escalation and as expectations of growing supplies increased on that would reopen ports.

The <.DJI> fell 219.21 points, or 0.88 percent, to 24,700.45, the 500 <.SPX> lost 19.82 points, or 0.71 percent, to 2,774.02 and the Composite <.IXIC> dropped 42.59 points, or 0.55 percent, to 7,716.61.

Chipmakers, which largely depend on for their revenue, fell, with the index <.SOX> down 2.6 percent.

The market's drop was not as steep as what was seen in late March and early April when the escalating trade rhetoric between and the led to the S&P falling more than 2 percent on four occasions.

The market slide may have been contained in part by speculation the could change its mind by the end of August, when the tariffs are due to come into effect, some strategists said.

The was the only one in positive territory, with a 0.9 percent gain.

fell 4 percent after the company raised its offer for Britain's , seeing off rival bidder for now. shares were up 1.3 percent.

Declining issues outnumbered advancing ones on the NYSE by a 2.74-to-1 ratio; on Nasdaq, a 1.87-to-1 ratio favored decliners.

The S&P 500 posted 13 new 52-week highs and one new low; the Composite recorded 63 new highs and 51 new lows.

About 6.0 billion shares changed hands on U.S. exchanges. That compares with the 6.9 billion daily average for the past 20 trading days, according to data.

(Additional reporting by in Bengaluru; Editing by and James Dalgleish)

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

First Published: Thu, July 12 2018. 02:29 IST