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BCN-07
US-STOCKS-MARKETS
US stocks sink, S&P posts biggest weekly loss of 2019
NEW YORK, Aug 3, 2019 (BSS/AFP) – President Donald Trump’s shock decision
ending a trade truce with China sent US stocks lower on Friday, with two
major indices posting their biggest weekly losses of the year.
All three major Wall Street indices fell to their lowest levels since late
June, with investors still disappointed by the escalating trade conflict, new
tariffs and this week’s fuzzy signals on monetary policy from the Federal
Reserve.
The benchmark Dow Jones Industrial Average fell 0.4 percent on the day to
26,485.01, losing 2.6 percent for the week.
The broader S&P 500 fell 0.7 to 2,932.04 and the tech heavy Nasdaq lost 1.3
percent, closing at 8,004.07. It was the worst week since December of 2018
for the two indices which lost 3.1 percent and 3.9 percent, respectively.
Trump on Thursday stunned financial markets by ending by announcing fresh
punitive duties on $300 billion in Chinese imports — meaning nearly all
goods from China will be subject to tariffs as of September 1.
This came a day after the Fed shook markets, announcing a smaller-than-
hoped-for cut in interest rates and offering conflicting hints as to whether
the central bank is likely to cut again.
Shaw Cruz, manager of trader strategy at TDAmeritrade, told AFP the trade
war news had investors fearing a hit to corporate profits later this year.
“It can affect the third- and fourth-quarter earnings. It can be expensive
for companies to switch up their supply chains,” he said. “It’s not something
you can do overnight.”
Among individual companies, industrials Deere and Caterpillar, both seen as
exposed to trade, fell 1.6 percent and 1.8 percent respectively.
Exxon Mobil fell about one percent while fell petroleum supermajor Chevron
ended about flat after the two companies reported mixed quarterly results.
The stock price moves followed volatility in oil prices tied to the US-
China trade war escalation.
BSS/AFP/HR/0935