Wall Street prolongs decline as US-China trade increases by Reuters

By Amy Caren Daniel

(Reuters) – US stocks fell more than 1% Tuesday as a result of a wave of widespread technology-driven selloff, as rising trade tensions between the US and China sparked fears related to growth and prevented investors from accessing riskier assets.

Beijing announced on Tuesday that Chinese Vice Premier Liu He will travel to the United States this week for trade talks, thus downplaying US President Donald Trump's unexpected threat to raise tariffs on Chinese goods for $ 200 billion, from 10% to 25%.

Trade tensions drove down US Treasury yields, as investors opted for low-risk government bonds, putting pressure on interest-sensitive bank stocks, which fell 1.51%.

Boeing (NYSE 🙂 Co, the leading US exporter to China, fell 3.2% and caterpillar Inc. (NYSE 🙂 decreased 2.0%.

"As we understand the importance of the tariff threat, we hope a little less that we will see progress at the end of this week to prevent additional tariffs," said Tony Roth, Investment Director at Wilmington Trust. in Wilmington. , Delaware.

"The global economy is coming to an end on a soft landing. We have seen some acceleration as we approach a resolution, but here, as it crumbles, the direct and indirect impact of tariffs on the global economy has to be determined. "

All major S & P sectors traded in the red, with nine of them losing more than 1%.

The indicator of investor anxiety has reached its highest level in more than three months.

At 12:39 ET was down 391.89 points, or 1.48%, to 26,046.59. The was down 39.89 points, or 1.36%, to 2,892.58 and was down 123.30 points, or 1.52%, to 7,999.99.

Marquee names including Microsoft Corp (NASDAQ :), Apple Inc. (NASDAQ :), Amazon.com Inc. (NASDAQ 🙂 and Facebook Inc (NASDAQ 🙂 fell more than 1.7% and weighed on the markets.

While the earnings season is now at its peak, earnings forecasts for the first quarter are now up 1.2%, a clear improvement from the 2.3% decline expected at the start of the earnings season. .

According to Refinitiv data, approximately 75% of the 414 S & P companies reporting earnings to date have exceeded analysts' estimates.

American International Group Inc. (NYSE 🙂 jumped 7.6% after the insurer posted a quarterly profit that exceeded expectations.

Mylan (NASDAQ 🙂 NV fell 17%, the largest number of S & P companies, after the drug maker had announced a quarterly turnover lower than expected and no longer expected. has not provided greater precision on a possible overhaul of its strategy.

Falling issues outnumbered defenders for a ratio of 3.55 to 1 on the NYSE and a ratio of 2.71 to 1 on the Nasdaq.

The S & P index recorded four new highs over 52 weeks and five new lows, while the Nasdaq recorded 41 new highs and 34 new lows.