· Stocks fell on Tuesday as a decline in interest rates during the U.S.-China trade war sparked worries about a possible slowdown in the economy.
The Dow Jones Industrial Average dropped 237.92 points to 25,347.77, giving up a 131-point gain from earlier in the day. The S&P 500 pulled back 0.8% to 2,802.39 as the consumer staples and utilities sectors lagged. The Nasdaq Composite fell 0.4% to end the day at 7,607.35. The S&P 500 and Nasdaq traded higher earlier in the session. The major indexes slid to their session lows in the last hour of trading.
· Bank shares fell broadly amid the lower interest rates. Goldman Sachs dropped 1.8% while Citigroup and J.P. Morgan Chase fell 0.9% and 1.1%, respectively. Morgan Stanley and Wells Fargo also slipped.
The drop in bank shares and rates come after President Donald Trump said on Monday the U.S. was “not ready” to make a deal with China, before adding he expected one in the future. Trump also said tariffs on Chinese imports could go up “substantially.”
A Chinese official also hinted on Tuesday China could use its dominance over rare earth metals as leverage in the trade war. Rare earth metals are used to make several products, including long-lasting batteries.
· Stocks in Asia declined in Wednesday morning trade following overnight losses on Wall Street that saw the Dow Jones Industrial Average falling more than 200 points.
In Japan, the Nikkei 225 dropped 1.35% in early trade as shares of convenience store chain FamilyMart dropped more than 3%. The Topix also declined 1.36%.
Over in South Korea, the Kospi declined 0.74%, with shares of Samsung Electronics falling more than 2%.
The ASX 200 in Australia also shed 0.81% as almost all the sectors traded lower.
Reference: CNBC
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