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Wall Street drops as trade jitters resurface


By Shreyashi Sanyal

(Reuters) - fell 1.5 percent on Friday with a drop in sparking a turnaround from earlier in the day, as renewed concerns of the China-U.S. trade situation offset the effect of a jump in and a tepid U.S. jobs report.

The trade standoff between and has been a overhang on equities for most of this year and this week has seen the markets sell off on diminishing hopes that their truce, brokered last weekend, would help resolve differences.

These concerns were fanned on Friday by Peter Navarro's comments that U.S. officials would raise tariff rates if the two countries could not come to an agreement during the 90-day negotiating period.

Earlier, a Labor Department report showed nonfarm payrolls increased by a less-than-expected 155,000 jobs last month. The data was tepid enough to lower bets for faster future interest rate hikes without fanning fears of an economic slowdown.

Stock futures pared losses after the jobs report and the three indexes moved higher shortly after the open. But the bump was short lived.

"Some of the fears of economic slowdown (such as) the trade conflict and rising yields are coming back, and one piece of economic data is not enough for markets to bounce," said Michael Antonelli, managing director, at Robert W. Baird in

The and slid more than 2 percent, while the five other sectors, including trade-sensitive industrials, were down between 1 percent and 2 percent.

Apple Inc, Microsoft Corp, and were all down 2 percent or more and were the biggest drags on the S&P and the

At 11:30 a.m. ET the was down 384.22 points, or 1.54 percent, at 24,563.45, the S&P 500 was down 37.78 points, or 1.40 percent, at 2,658.17 and the Composite was down 125.86 points, or 1.75 percent, at 7,062.40.

The S&P's 50-day moving average fell below its 200-day moving average in intraday trading, a phenomenon known as a "death cross" and one that stands as a bearish near-term signal only if it holds through the close.

stocks rose 1.10 percent after jumped as big producers in OPEC agreed to reduce output to drain global inventories and support the market. [O/R]

The and the were the only two among the 11 major S&P sectors to trade higher.

rose 2.1 percent after the Marlboro took a $1.8 billion stake in Canadian Cronos Group Inc, whose U.S.-listed shares jumped 21 percent.

Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and a 1.41-to-1 ratio on the

The S&P index recorded seven new 52-week highs and nine new lows, while the Nasdaq recorded 11 new highs and 89 new lows.

(Reporting by in Bengaluru; Editing by and Shounak Dasgupta)

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

First Published: Fri, December 07 2018. 22:41 IST