Trade tensions push down Wall Street

By April Joyner NEW YORK (Reuters) - U.S. stocks dipped on Wednesday as reports that Washington could impose restrictions on another Chinese technology company further inflamed trade tensions between the world's two largest economies

Reuters May 23, 2019 02:06:10 IST
Trade tensions push down Wall Street

Trade tensions push down Wall Street

By April Joyner

NEW YORK (Reuters) - U.S. stocks dipped on Wednesday as reports that Washington could impose restrictions on another Chinese technology company further inflamed trade tensions between the world's two largest economies.

Fears that tit-for-tat tariffs and other retaliatory actions by the United States and China will hit global growth have kept investors on edge, putting the S&P 500 on track to post its first monthly decline since the December selloff.

Media reports on Wednesday said the Trump administration was considering sanctions on video surveillance firm Hikvision, the second major Chinese technology company facing U.S. curbs.

The release of minutes from the Federal Reserve's latest policy meeting, in which officials agreed that their patient approach to setting monetary policy could remain in place "for some time," had little impact on Wall Street's major indexes.

"I don't think the Fed is a major consideration for the market right now," said Robert Phipps, a director at Per Stirling Capital Management in Austin. "There are times when geopolitical factors overwhelm everything else, and we believe this is increasingly one of those times."

"The Fed meeting took place before the trade deal blew up," he added.

The Dow Jones Industrial Average fell 50.18 points, or 0.19%, to 25,827.15, the S&P 500 lost 2.37 points, or 0.08%, to 2,861.99 and the Nasdaq Composite dropped 11.30 points, or 0.15%, to 7,774.43.

Also weighing on the markets was Qualcomm Inc's 11.4% plunge, among the biggest declines on the S&P 500.

A federal judge ruled that the chipmaker illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees.

Retailers wrapped up the first-quarter earnings season on a downbeat note, with Lowe's Cos Inc shares falling 12.3% after the home improvement chain cut its full-year profit forecast. Lowe's was among the biggest drags on the S&P 500 consumer discretionary sector index, which fell 0.7%, as well as the S&P 500 at large.

Nordstrom Inc shares declined 9.6% after the department store operator reduced its full-year sales and profit forecasts.

However, shares of Target Corp jumped 9.3%, the most among S&P 500 companies, after the retailer's quarterly same-store sales and profit beat estimates.

Declining issues outnumbered advancing ones on the NYSE by a 1.57-to-1 ratio; on Nasdaq, a 1.75-to-1 ratio favoured decliners.

The S&P 500 posted 27 new 52-week highs and eight new lows; the Nasdaq Composite recorded 39 new highs and 109 new lows.

(Reporting by April Joyner; Additional reporting by Shreyashi Sanyal and Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila and Nick Zieminski)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.