· Stocks fell for a second day on Wednesday, pressured by declines in tech and bank shares, pausing a sharp rally to start off June.
The Dow Jones Industrial Average dipped 43.68 points, or 0.2%, to 26,004.83 while the S&P 500 closed 0.2% lower at 2,879.84. The Nasdaq Composite lagged, sliding 0.4% to 7,792.72.
Market focus remained largely attuned to global trade developments on Wednesday, after President Donald Trump said Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agreed on as many as five “major points.” Trump did not specify these trade issues.
Wall Street also kept an eye on economic data as investors increasingly price in a rate cut from the Federal Reserve. Market expectations for lower rates by July were at 85.3% on Wednesday, according to the CME Group’s FedWatch tool. Low inflation, coupled with weak economic data, led to the possibility of lower Fed rates.
· European stocks traded lower Wednesday after the U.S. and China resumed tough stances in their ongoing trade war.
The pan-European Stoxx 600 was down 0.26% during the session, oil and gas stocks leading losses with a 2.1% decline, while banks fell 1.1%. Media stocks were the strongest performer with a 0.7% gain.
· Shares in Asia Pacific traded mixed on Thursday following an overnight slip for stocks on Wall Street.
In Japan, the Nikkei 225 slipped 0.48% in early trade as shares of Apple supplier Japan Display plummeted more than 11.5% after the company announced new restructuring plans, with the company’s president and CEO set to step down. The Topix index also declined 0.86%.
Over in South Korea, the Kospi shed 0.25% as shares of chipmaker SK Hynix dropped more than 2%. The ASX 200 in Australia traded marginally higher.
Investors will be watching out for market reaction from Hong Kong’s Hang Seng index. It closed 1.73% lower on Wednesday, having lost as much as 2% in the afternoon, amid violent clashes between protesters and riot police over a controversial extradition bill.
Reference: CNBC
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