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Renewed U.S.-China trade tensions push down Wall Street

Stock MarketsMay 22, 2019 04:39PM ET
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© Reuters. FILE PHOTO: Traders work on the floor at the NYSE in New York

By April Joyner

NEW YORK (Reuters) - Wall Street's major indexes dipped on Wednesday as inflamed trade tensions between the United States and China weighed on investor sentiment.

A day after Washington's temporary easing of curbs against Huawei Technology Co Ltd provided respite to U.S. stocks, reports that the White House could impose restrictions on another Chinese technology company rattled U.S. stocks anew.

Media reports on Wednesday said the Trump administration was considering sanctions on video surveillance firm Hikvision.

Fears that tit-for-tat tariffs and other retaliatory actions by the United States and China will hamper global growth have kept investors on edge, putting the S&P 500 on track to post its first monthly decline since the December sell-off.

"Business between the U.S. and China is not going to be what it was two months ago," said Jim Awad, senior managing director at Clearstead Advisors in New York. "They're going to tighten the screws, and we're going to tighten the screws."

"The market is attempting to reset U.S. profit growth expectations in light of that," he said.

The Dow Jones Industrial Average fell 100.72 points, or 0.39%, to 25,776.61, the S&P 500 lost 8.09 points, or 0.28%, to 2,856.27 and the Nasdaq Composite dropped 34.88 points, or 0.45%, to 7,750.84.

A tumble in shares of Qualcomm (NASDAQ:QCOM) Inc and Lowe's Companies Inc helped drag down the benchmark S&P 500 index.

A federal judge ruled that Qualcomm illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees. The chipmaker's shares plunged 10.9%.

Lowe's shares dived 11.8% after the home improvement chain cut its full-year profit forecast.

Another retailer, Nordstrom Inc (NYSE:JWN), also reduced its sales and profit forecasts. Nordstrom shares dropped 9.2%.

However, shares of Target Corp (NYSE:TGT) jumped 7.8%, the most among S&P 500 companies, after the retailer's quarterly same-store sales and profit beat estimates.

The release of minutes from the Federal Reserve's latest policy meeting, in which officials agreed that their patient approach to setting monetary policy could remain in place "for some time," had little impact on Wall Street's major indexes.

Declining issues outnumbered advancing ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.94-to-1 ratio favored decliners.

The S&P 500 posted 28 new 52-week highs and eight new lows; the Nasdaq Composite recorded 43 new highs and 121 new lows.

Volume on U.S. exchanges was 6.00 billion shares, compared to the 6.94 billion average for the full session over the last 20 trading days.

Renewed U.S.-China trade tensions push down Wall Street
 

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Comments
Andrea Bisi
Andrea Bisi May 22, 2019 6:49PM ET
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even if I understand the reason I still believe this thing will last years
Fred Smith
Fred Smith May 22, 2019 1:52PM ET
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Tax China 85% on everything
Michael Folsom
Michael Folsom May 22, 2019 1:52PM ET
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Will the shoe companies for example, absorb that cost? They've already come out saying they "can't afford" this trade war. Perhaps they should bring jobs home instead.
Andrew Hook
Andrew Hook May 22, 2019 1:52PM ET
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and watch you fall lol
Suman Jutur
Suman Jutur May 22, 2019 1:52PM ET
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silly statement
Michael Folsom
Michael Folsom May 22, 2019 12:22PM ET
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Why does China need the United States? They buy our debt (treasuries) so the US and it's consumers can finance their own debt. If China cuts us off altogether, they can still sell to other countries AND they won't have to finance it.
Dave Jones
Dave Jones May 22, 2019 12:22PM ET
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Whoever pays the piper calls the tune. China pays the piper.
Paul Dunne
Paul Dunne May 22, 2019 12:22PM ET
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I agree. It had occurred to me that China might cease all trade with the USA.
LI SH
LI SH May 22, 2019 12:22PM ET
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Was US prosperous before China joined WTO, if yes why worry
Zoltan McVeigh
Zoltan McVeigh May 22, 2019 12:22PM ET
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Whoever develops all the technology calls the tune. Lol
Zoltan McVeigh
Zoltan McVeigh May 22, 2019 12:22PM ET
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Has anyone thought why the accusation of technology theif isn't just the United States? Educate yourself and not be left behind.
Luis Serrano
Luis Serrano May 22, 2019 9:50AM ET
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how do you know it will be 20%?
Jay King
Jay King May 22, 2019 8:52AM ET
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trade war will cause iphone price increase 20% we win what dont imaging USA company will move back from China Tesla sets a factory in ShangHai,China this year
 
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