Wall Street stumbles late with China tensions rising
“We are concerned (it’s) sabre rattling with China… It was just a big selloff because of that,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, New York.
Stocks had been higher for most of the session as investors continued to bet on a swift recovery from the coronavirus-driven economic slump.
Worsening ties in recent weeks between the United States and China, the world’s two largest economies, could pose a threat to the stockmarket’s strong recovery from its steep selloff.
The Dow Jones Industrial Average fell 147.63 points, or 0.58 per cent, to 25,400.64, the S&P 500 lost 6.4 points, or 0.21 per cent, to 3,029.73 and the Nasdaq Composite dropped 43.37 points, or 0.46 per cent, to 9,368.99.
The late swoon sets up the Australian sharemarket for losses this morning, with futures at 6.30am AEST pointing to a drop of 27 points or 0.5 per cent, at the open. On Thursday, the ASX200 added 1.3 per cent.
The S&P 500 is still up sharply from the low hit in March as a restart in business activity after weeks of shutdown and massive amounts of stimulus measures to support the economy have driven hopes of a strong recovery.
Boeing said it had resumed production of its 737 MAX passenger jet at its Washington state plant, although at a “low rate.”
Declining issues outnumbered advancing ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favoured decliners.
Volume on US exchanges was 11.25 billion shares, compared to the 11.26 billion average for the full session over the last 20 trading days.
The S&P 500 posted 18 new 52-week highs and no new lows; the Nasdaq Composite recorded 67 new highs and seven new lows.