Wall Street losses deepen on growth, trade worries

Adjust Comment Print

In comments on Tuesday, New York Fed President John Williams said the US central bank should expect to continue raising interest rates "over the next year or so" even while it pays close attention to possible risks highlighted by financial markets.

Tuesday's losses more than erased the gains of the previous two trading days, when cautiously optimistic investors bid up stock prices amid hopes that USA and China were resolving their trade dispute.

The Dow Jones Industrial Average fell 799.36 points (3.10 per cent) to 25,027.07. The S&P 500 index closed at 2,700, down 90 points or 3.24 percent.

The Nasdaq composite lost 226 points, or 3 per cent, to 7,217. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

USA futures also augured a downbeat start for Wall Street after markets were closed Wednesday to mourn the death of former President George H.W. Bush.

Markets in Europe also fell.

More news: Did Offset Cheat On Cardi B? Multiple Alleged Mistresses Speak Out

On the other hand, China's Commerce Ministry said on Wednesday that the G-20 talks were "very successful" and that it was "confident" a deal could be reached within the next 90 days.

Analysts said Tuesday's decline in stocks also reflected rising skepticism about a weekend announcement that US President Donald Trump meant to halt new tariffs on China for 90 days while the two countries work out a long-term trading deal. Australia's S&P/ASX 200 lost 0.2 percent to 5,657.70, while South Korea's Kospi sank 1.6 percent to 2,068.69.

The trade dispute has rattled markets in recent months as signs emerged that it has begun affecting corporate profits. -China trade war and a possible economic slowdown.

The Dow Jones Transport Average .DJT declined 4.4 percent, its biggest one-day percentage drop since June 2016. Advanced Micro Devices dropped 10.9 percent to $21.12, while Micron Technology lost 7.9 percent to $36.88.

Homebuilders fell after luxury homebuilder Toll Brothers issued a cautious assessment of the housing market.

Apple lost 4.4 percent to $176.69 after the consumer electronics giant was downgraded by HSBC analysts, citing the possibility that iPhone volume and value growth may moderate due to a saturated mobile phone market.

More news: Trump to name former Fox anchor Heather Nauert as next United Nations ambassador

Oil prices rose. OPEC members are expected to agree at a Thursday meeting to cut output in 2019.

Brent crude, the worldwide standard, added 0.6 percent to close at $62.08 per barrel in London.

CURRENCY: The dollar gained to 112.95 yen from Wednesday's 112.78 yen. The pound erased a gain as the threat of a vote to bring down British Prime Minister Theresa May's government looms should Parliament reject her Brexit deal.

Asian markets closed mixed, Tokyo's Nikkei fell 2.4per cent, Hong Kong's Hang Seng increased 0.3 per cent and China's Shanghai Composite was up 0.4 per cent.

Gold gained 0.6 percent to $1,246.60 an ounce. Germany's DAX lost 1.1 per cent, while France's CAC 40 dropped 0.8 per cent.

More news: 'Fortnite' season seven adds planes, custom weapons and lots of ice