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© Reuters. Traders work on the ground at the NYSE in New York
By Shreyashi Sanyal and Amy Caren Daniel
(Reuters) – US stocks fell on Thursday, highlighting a high-stakes meeting between the United States and China, which could decide the fate of a long-overdue trade deal, even as new tariffs on Chinese products were looming.
Trump has promised not to back down on the imposition of new tariffs unless Beijing "stops fooling our workers," as two-day talks begin in Washington on Thursday.
China has threatened retaliation if tariffs on Chinese goods rising to $ 200 billion increased by 25% on Friday, highlighting worries of a global economic slowdown and causing investors to flee to the country. security.
"This is a worrying sentiment for investors as they do not know how to react to these conflicting signals from trade negotiations," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.
"There is not really much precedent for what Trump is doing here, but the general opinion is that he wants an agreement." The talks are not over and he is possible that they always reach an agreement. "
The benchmark fell below its 50-day moving average, a level of short-term tracking followed closely by all major sectors.
The technology sector recorded the largest declines, down 1.58%, driven by lower shares of iPhone maker Apple Inc. (NASDAQ 🙂 and chip makers, which are largely driven by their income from China.
The chip index in Philadelphia fell by 2.25%, also driven by a modest earnings growth forecast from Intel (NASDAQ :). The index has fallen 7.6% so far this week and is about to post its biggest weekly percentage loss since January 2016.
Trade-sensitive industrial bells have also been affected, with Boeing (NYSE 🙂 Co, caterpillar Inc. (NYSE 🙂 and 3M (NYSE 🙂 Co trading 1%.
At the same time, the data showed that the merchandise trade deficit between the United States and China, the theme of the Trump administration's "America First" program, fell to its lowest level in five years in March. a context of strong growth in exports, including soybeans.
The index of concern of investors has reached its highest level in four months.
At 9:43 am, the drop of 245.57 points, or 0.95%, to 25,721.76. The S & P 500 was down 27.83 points, or 0.97%, to 2,851.59 and the decline of 93.95 points, or 1.18%, to 7,849.37.
Tapestry Inc. climbed 11.3%, the highest rate for S & P companies, after Coach purse maker beat quarterly earnings expectations and announced a $ 1 billion share buyback program of dollars.
Chevron Corp. (NYSE 🙂 climbed 2.9% and represents the biggest boost for the Dow, after the oil major announced that it would not increase its bid to buy 33 billion dollars to buy Anadarko Petroleum Corp. (NYSE :).
Falling issues outnumbered defenders for a ratio of 3.83 to 1 on the NYSE and a ratio of 3.45 to 1 on the Nasdaq.
The S & P index has recorded no new highs with 52 weeks and eight new lows, while the Nasdaq has recorded 13 new highs and 43 new lows.
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