Stocks fell on Tuesday as President Donald Trump’s comments cast doubt about a deal being struck on U.S.-China trade.
The Dow Jones Industrial Average dropped 201 points while the S&P 500 declined 0.6 percent. The Nasdaq Composite lagged, sliding more than 0.8 percent.
In an interview with The Wall Street Journal, Trump said that it was “highly unlikely” that the U.S. would delay from increasing tariffs on $200 billion in Chinese goods to 25 percent.
Trump went onto suggest that a 10 percent tariff on laptops and iPhones imported from China could be imposed. The president’s comments come ahead of an all-important summit between leaders of the G-20, which includes both Trump and China’s Xi Jinping.
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Shares of Apple dropped 1.8 percent, while other popular tech stocks like Facebook, Amazon, Netflix and Google-parent Alphabet also fell.
Steel stocks also fell broadly. The VanEck Vectors Steel ETF dropped 1.8 percent to a fresh 52-week low as U.S. Steel shares fell more than 5 percent.
Meanwhile, United Technologies pulled back 5 percent after the company unveiled a plan to split up its elevator, air conditioning and aerospace businesses.
The moves on Tuesday come after Wall Street finished Monday’s session sharply higher, with the Dow Jones industrial average closing more than 350 points higher. The S&P 500 also rose more than 1 percent.
“Overall, this rally will be tentative until S&P can get up above 2700 and produce a stronger session of positive breadth, momentum and volume,” said Mark Newton, managing member at Newton Advisors, in a note. The S&P 500 closed Monday’s session at 2,673.45. “Until that happens, it is tough making too much of this rally, as momentum and trends remain negatively sloped on daily and weekly timeframes.”
Stocks have been under pressure recently as shares like Facebook, Amazon, Apple, Netflix and Google-parent Alphabet entered bear-market territory. Investors have also fretted over the Federal Reserve’s plans to tighten monetary policy. The central bank is largely expected to hike rates next month.
However, Fed Vice Chairman Richard Clarida said the central bank was “much closer” to a neutral rate than it was in December 2015, the first time the Fed hiked since the financial crisis. “How close is a matter of judgment, and there is a range of views on the FOMC,” he said.
Source: cnbc.com | Original Link