Trump tweetstorm sinks Wall Street as trade war rages on
By Stephen Culp NEW YORK (Reuters) - Wall Street plunged in a broad sell-off on Friday as China and the United States traded their latest salvos in a prolonged trade war, spooking investors and erasing slight gains following a generally positive speech by U.S. Federal Reserve chair Jerome Powell. All three major U.S
By Stephen Culp
NEW YORK (Reuters) - Wall Street plunged in a broad sell-off on Friday as China and the United States traded their latest salvos in a prolonged trade war, spooking investors and erasing slight gains following a generally positive speech by U.S. Federal Reserve chair Jerome Powell.
All three major U.S. stock indexes turned sharply lower, setting a course for their fourth consecutive weekly declines after President Donald Trump tweeted that U.S. companies should "immediately start looking for an alternative to China."
Trump pressed American companies to leave China in response to an earlier announcement from Beijing that it would impose a new round of retaliatory tariffs on an additional $75 billion in U.S. goods, upping the ante in an acrimonious trade war that has roiled markets for months and shown little sign of abating.
"It is mind-boggling," said Ken Polcari, managing principal at Butcher Joseph Asset Management in New York. "On one day (Trump) tells you everything is going great with China and today he is saying everyone get out of China."
"That is why the market is taking the most recent dive south is just because of (Trump's) tweets," Polcari added. "Not because of Jackson Hole or anything Powell said. It's all driven by the anxiety and it's Friday and a lot can happen over the weekend."
Earlier in the session, U.S. Federal Reserve chair Jerome Powell, speaking the Fed's annual meeting in Jackson Hole, Wyoming, reiterated that the central bank would "act as appropriate" to keep the current economic expansion afloat, but otherwise gave few clues as to whether an interest rate cut was in the cards at next month's policy meeting.
President Trump's tweeted response to the speech labelled Powell an "enemy."
Yields for 2-year and 10-year U.S. Treasuries entered inversion territory, a classic recessionary red flag. The curve has traded in and out of inversion for the past three days.
The CBOE Volatility index <.VIX>, a gauge of market anxiety, jumped 3.85 points to 20.49, its highest reading in a week.
The Dow Jones Industrial Average <.DJI> fell 489.79 points, or 1.87%, to 25,762.45, the S&P 500 <.SPX> lost 58.52 points, or 2.00%, to 2,864.43 and the Nasdaq Composite <.IXIC> dropped 201.95 points, or 2.53%, to 7,789.44.
All 11 major sectors in the S&P 500 were in negative territory, with tech <.SPLRCT>, energy <.SPNY>, consumer discretionary <.SPLRCD>, industrials <.SPLRCI> and communications services <.SPLRCL> all down 2% or more.
Shares of Apple Inc
Trade-sensitive chipmakers dropped on the bellicose trade rhetoric, with the Philadelphia SE Semiconductor index <.SOX> dipping 3.9%.
Speciality retailer Foot Locker Inc
Computer hardware company HP Inc
Second-quarter earnings season is essentially in the can, with 482 of the companies in the S&P 500 having reported. Of those, 73.9% have beaten consensus expectations, according to Refinitiv data.
Analysts now see 3.2% year on year earnings growth for the quarter, up significantly from the 0.3% gain seen at the beginning of July, per Refinitiv.
Declining issues outnumbered advancing ones on the NYSE by a 4.10-to-1 ratio; on Nasdaq, a 4.74-to-1 ratio favoured decliners.
The S&P 500 posted 33 new 52-week highs and 28 new lows; the Nasdaq Composite recorded 37 new highs and 142 new lows.
(Reporting by Stephen Culp; additional reporting by Charles Mikolajczak; Editing by Chizu Nomiyama)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
LONDON (Reuters) - Prince Harry and his wife Meghan have refunded British taxpayers 2.4 million pounds ($3.2 million), the cost of renovating their UK home, in line with a commitment they made after announcing in January they would step back from royal duties. The refurbishment of Frogmore Cottage, a house within the grounds of Queen Elizabeth's Windsor Castle west of London, had been criticised by some British media as too expensive. The repayment comes as Harry and Meghan, an American former actress, seek to forge new careers for themselves and attain greater financial independence.
FRANKFURT (Reuters) - Biotech firm BioNTech said on Monday it widened an ongoing pivotal global study of its COVID-19 vaccine candidate to include testing in its home country of Germany.
COPENHAGEN (Reuters) - A rapid switch to electric cars to meet Denmark's ambitious climate targets will leave a massive gap in its finances, a government commission said on Monday.