Stocks slumped in morning trading on Wall Street Tuesday as trade tensions escalate again with China.
The S&P 500 fell one per cent. The Dow Jones Industrial Average slipped 383 points, or 0.8 per cent, as of 9:57 a.m. Eastern time. The Nasdaq composite shed 1.5 per cent.
The slide marks one other sharp twist for markets over the previous couple of days. Wall Street tumbled on Friday for its worst day since April and bounced back on Monday for its best day since May. The swings were prompted by shifting trade sentiment between the U.S. and China.
The most recent dip follows China’s Commerce Ministry banning dealings by Chinese corporations with five subsidiaries of South Korean shipbuilder Hanwha Ocean, swiping at President Donald Trump’s efforts to rebuild the industry in America.
European markets were lower and Asian markets fell.
Canada’s major stock index, the Toronto Stock Exchange, was up a couple of per cent as of 10:00am Tuesday.
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The continued trade war between the U.S. and the world has been an unpredictable weight available on the market. The trade conflict between the U.S. and China is potentially probably the most economically consequential, owing to those nations’ positions because the two largest economies on the planet.
International shipping and shipbuilding have develop into a significant source of friction between Washington and Beijing, with either side imposing latest port fees on each others’ vessels. Those fees went into effect on Tuesday.
The U.S. economy has thus far dodged any major impact from the broad and continually shifting U.S. tariff policy. That might change if nations fall back right into a cycle of retaliatory tariffs and firms pass along more of the upper costs to consumers.
The U.S. government shutdown has put a halt to the standard economic updates on inflation, consumer spending and job growth. Wall Street is looking toward the most recent round of company earnings and forecasts to get a greater sense of the broader economic picture.
JPMorgan Chase slipped 3.8 per cent, despite beating Wall Street’s profit forecasts for its latest quarter. Wells Fargo rose 3.5 per cent after beating analysts’ forecasts.
Health care giant Johnson & Johnson fell 1.8 per cent after announcing that it can separate its orthopedics business right into a standalone company.
Treasury yields held relatively regular. The yield on the yield on the 10-year Treasury fell to 4.04 per cent from 4.05 per cent late Friday. Bond markets were closed within the U.S. on Monday for a vacation.
– With files from Global’s Ari Rabinovitch
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