Wall Street rally is running out of steam in the face of industrial resistance By Reuters

By Aparajita Saxena and Shreyashi Sanyal

(Reuters) – The main Wall Street indexes fell a little lower on Tuesday, as declines in industrial companies dampened optimism sparked by easing trade tensions and the prospect of a slowdown. interest rate reduction by the Federal Reserve.

Industrials down 1.09%, hurt by losses at United Technologies Corp (NYSE 🙂 and Raytheon (NYSE 🙂 Co.

United Technologies sold 4.1% and Raytheon 4.9%, a day after US President Donald Trump gave contradictory signals as to whether he believed the $ 121 billion merger between the two companies should take place. continue.

The optimism sparked by Trump's decision late Friday to suspend import duties on Mexico has helped the markets recover this week, even though the United States has warned that it would impose rights if their demands were not met.

By the way, Trump said he would impose more tariffs on imports from China if there was no progress in negotiations with Chinese President Xi Jinping at the summit of the G20.

"The unresolved trade dispute with China is still a cap on the stock market," said Greg McBride, vice president and chief financial analyst at Bankrate in Palm Beach, Florida.

"Do not expect the company to return to its record level as long as the trade agreement is not signed or about to be."

The benchmark is only about 2.4% of its early May record.

Meanwhile, the market is betting on a cut in interest rates in July and two more this year as Trump's bitter trade talks with Beijing and others could plunge the economy back into recession.

However, producer prices in the United States rose sharply for a second consecutive month in May, matching the expectations of economists polled by Reuters, indicating a continued recovery in underlying inflationary pressures.

At 12:45 pm EDT, the decline of 13.89 points or 0.05% to 26,048.79, that of the S & P 500 of 2.55 points or 0.09% to 2,884.18 and the decrease of 8.08 points or 0.10% to 7,815.09.

A decline in technology stocks, including Microsoft Corp (NASDAQ :), Mastercard Inc. (NYSE 🙂 and Adobe (NASDAQ 🙂 Inc., have also added pressure to the indexes.

Symantec Corp (NASDAQ 🙂 fell 2.8%, after Morgan Stanley (NYSE 🙂 downgraded the antivirus software vendor's stock due to increased competition.

Falling issues outnumbered defenders for a ratio of 1.05 to 1 on the NYSE and a ratio of 1.33 for Nasdaq.

The S & P index posted 49 new highs over 52 weeks and three new lows, while the Nasdaq recorded 51 new highs and 73 new lows.