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by Caroline Valetkevitch
NEW YORK (Reuters) – The New York Stock Exchange ended Wednesday sharply lower against the threat of a further worsening of the trade dispute between the United States and China, which particularly US large industrial stocks and oil sector suffered
After four consecutive rises, the Dow Jones index lost 219.21 points (-0.88%) to 24,700.45. Standard & Poor's 500, the largest and most important investor benchmark, dropped 19.82 points (-0.71%) to 2,774.02. The Nasdaq Composite, with a strong technological component, dropped 42.587 points, or 0.55%, to 7.716,611.
All major stock exchanges around the world fell on Wednesday the day after new commercial threats from the United States against China
Donald Trump's administration released Tuesday a list of Chinese products worth US $ 200 billion worth of US imports that Washington could tax at 10 percent in two months. lack of agreement with Beijing. China has warned it will retaliate.
The threat of a trade war between the world's two largest economies comes as the quarterly US corporate earnings season kicks off. Morgan Stanley has warned its customers that this telescoping could trigger a new wave of risk aversion if companies begin to warn about the consequences of this commercial arm wrestling on their future profits.
Major industrial groups, sensitive to market tensions, have particularly suffered on Wall Street, like Boeing (-1.89%), main contributor to the decline of the Dow Jones, but also Caterpillar (-3.18%) or 3M ( -1.89%).
SEMICONDUCTOR MANUFACTURERS AFFECTED
Technological stocks (-0.51%) were also affected, like semiconductor manufacturers such as NXP, AMD , Broadcom, Micron or Nvidia which dropped between 1.7% and 2.8%. The semiconductor index of the Philadelphia Stock Exchange dropped 2.59%.
Oil is also among the first victims of this clash between the United States and China. Brent fell by nearly 7% and US light crude by 5%, bringing in their wake energy values (-2.15%), chief among which the Chevron oil majors (-3, 19%) and Exxon Mobil (-1.28%).
"The trend of the day did not start well because of tariff fears," says Michael Antonelli (Robert W. Baird). "The drop in oil adds a further downward factor."
All major S & P sector indices ended in the red, with the exception of the utilities sector (+0 , 87%) and, to a lesser extent, distribution (+0.04%).
Twenty-First Century Fox lost 3.98% to individual stocks after lifting its offer on the British group Sky TV. Comcast, which fought Fox in this case, however, gained 1.29%.
American Airlines fell 8%, the largest decline in the S & P-500, after lowering its forecast growth in the number of total business per seat / mile available (TRASM).
Against the trend, Fastenal jumped 10%, by far the largest increase in the S & P-500, after the publication by the distributor of industrial products and materials construction of quarterly results above expectations.
(With Amy Caren Daniel in Bangalore, Bertrand Boucey for the French service)
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