US Stocks Fall on Weak Data, World Trade Worries

08:21 AM September 29, 2019

Wall Street stocks fell Friday following lackluster US economic data and report the Trump administration is weighing new restrictions on US investment in China.

Stocks took a sharp drop after reports the White House is considering imposing limits on American investment in China and in Chinese assets, including delisting Chinese companies from US stock markets.

ADVERTISEMENT

In addition, data reports Friday showed a sharp decline in US consumer spending in August and a weak demand for big-ticket manufacturing goods, suggesting a hit to the economy from President Donald Trump’s trade war with China.

The Dow Jones Industrial Average finished at 26,820.25, down 0.3 percent, after it recouped some losses from earlier in the session.

The broad-based S&P 500 shed 0.5 percent to close the day at 2,961.80, while the tech-rich Nasdaq Composite Index fell 1.1 percent to end at 7,939.63.

Equities have fluctuated this week following shifting signals from Beijing and Washington, falling after Trump took a strident line in a United Nations address, but rallying on more upbeat comments a day later and after China said it would buy US soybeans.

But Hu Xijun, the editor of China’s state-controlled Global Times tabloid said in a tweet Friday that the agriculture purchases “signaled China’s goodwill, not concessions.” And he warned that “real progress in trade talks” would be needed to sustain the purchases.

ADVERTISEMENT

The trade war has hung overstocks for more than a year.

Gregori Volokhine, the strategist for Meeschaert Financial Services, told AFP the reports of additional restrictions on China appeared to be part of the Trump administration’s bargaining strategy.

Among individual companies, Micron Technology sank 11.1 percent after it projected earnings and gross profit margins well below analyst expectations.

Some other large semiconductor stocks also fell.

But Wells Fargo shot up 3.8 percent after tapping Charles Scharf to take over as its new chief executive. Scharf, currently chief of Bank of New York Mellon, previously worked as chief executive at Visa and in senior roles at JPMorgan Chase.

Bank of New York Mellon tumbled 4.5 percent.

USsharesofLatamAirlinesGroupsurged31percentafterDeltaAirLinesannounceditwouldacquirea 20percentstakeinSouthAmerican carrier Latam Airlines Group for $1.9 billion. Delta shed 0.9 percent.

Don't miss out on the latest news and information.
View comments
TAGS: Trump Administration
For feedback, complaints, or inquiries, contact us.



We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.