You are here: Home » Reuters » News
Business Standard

Wall Street on track to snap 4-day rally; latest trade threat weighs

Reuters  |  NEW YORK 

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks looked set on Wednesday to snap a four-day winning streak 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 prices 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 throughout the recent trade dispute, were among the Dow's biggest drags on Wednesday.

The materials index <.SPLRCM>, down 1.7 percent, was another big negative influence among sectors, with down 3.7 percent as copper prices hit their lowest in about a year.

"The tone of today didn't start off well due to tariff fears," said Michael Antonelli, managing director, institutional sales trading, at Robert W. Baird in

But, he said, "the drop in is driving this extra drop lower."

The 500 index <.SPNY> fell 2.1 percent, leading sector declines. U.S. futures settled down 5 percent on the trade dispute escalation and as expectations of growing supplies increased on that would reopen ports.

The <.DJI> fell 186.39 points, or 0.75 percent, to 24,733.27, the 500 <.SPX> lost 16.59 points, or 0.59 percent, to 2,777.25 and the <.IXIC> dropped 32.84 points, or 0.42 percent, to 7,726.35.

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

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

Investors are also looking forward to the earnings season, where companies are expected to post second-quarter profit growth of around 21 percent, according to data.

However, told clients that the earnings season could trigger risk aversion among investors if companies start warning of slower growth due to trade tariffs.

Chipmakers, which largely depend on for their revenue, weighed the most, with the index <.SOX> falling 2.4 percent.

The was the only one in positive territory, with a 0.8 percent gain.

fell 3.6 percent after the company raised its offer for Britain's , seeing off rival bidder for now. shares were up 1.2 percent.

Declining issues outnumbered advancing ones on the NYSE by a 2.31-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored decliners.

The S&P 500 posted 12 new 52-week highs and 1 new lows; the recorded 59 new highs and 43 new lows.

(Additional reporting by in Bengaluru; Editing by and Chizu Nomiyama)

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

First Published: Thu, July 12 2018. 00:38 IST
RECOMMENDED FOR YOU