Stocks fell on Monday as a potential trade war between the U.S. and China — the world’s largest economies in the world — left Wall Street rattled.
The Dow Jones Industrials plummeted 103.01 points to close at 24,987.47, with Intel as the worst-performing stock in the index. The Dow also extended its losing streak to five days.
The S&P 500 lost 5.79 points to 2,773.87, with telecom lagging.
The NASDAQ fought its way out of the shadows to enjoy a gain of 0.65 points to 7,747.02, paring losses as tech shares rose and Amazon hit an all-time high.
Shares of Disney fell 1.6% after being downgraded by Pivotal Research Group analyst Brian Wieser. In a note, Wieser said its battle for key Twenty-First Century Fox assets has placed the company in an unwinnable situation.
Intel dropped 3.4% after Northland Capital Markets downgraded the stock to underperform from market perform, citing growing competition from AMD and Nvidia and predicting slower sales growth in its data center business.
Shares of Boeing and Caterpillar both fell 0.9%. The two companies are seen as bellwethers for global trade concerns given their large amounts of overseas business.
On Friday, President Donald Trump announced that the U.S. would inflict tariffs that would impact up to $50 billion worth of Chinese goods.
According to Washington, the action comes “in light of China’s theft of intellectual property and technology and its other unfair trade practices.”
Consequently, the move triggered China to retaliate, with Beijing announcing its own selection of duties on U.S. goods. The Chinese State Council’s commission on tariffs and customs stated that a 25% tariff would occur in early July on $34 billion of U.S. products.
Prices for the benchmark for the 10-year U.S.Treasury eked upward, lowering yields to 2.92% from Friday’s 2.93%. Treasury prices and
yields move in opposite directions.
Oil prices climbed 74 cents to $65.80U.S. a barrel.
Gold prices picked up $2.40 at $1,280.90U.S. an ounce.
This article provided by NewsEdge.