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Stocks - Dow Drops More than 200 as Trade Concerns Trigger Selloff

Stock MarketsFeb 07, 2019 04:56PM ET
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Investing.com - The Dow fell for the second-straight day Thursday as reports President Donald Trump is unlikely to meet with President Xi Jinping before the March trade deadline weighed on sentiment.

The Dow Jones Industrial Average fell 0.87%. The S&P 500 lost 0.94%, while the Nasdaq Composite fell 1.18%.

Hopes of a U.S.-China trade deal were thrown into doubt as CNBC reported that a meeting between Trump and Xi is "highly unlikely" to take place before March 1, after which, in the absence of a deal, the U.S. could impose another round of tariffs and raise duties on imports to 25% from 10%.

Without a deal, many fear the tit-for-tat tariff exchange between the two nations could resume, pressuring global economic growth, potentially undoing the strong stock gains seen so far this year.

The U.S. has slapped tariffs on $250 billion worth of Chinese goods, about half the value of U.S. imports from the country. China has retaliated with tariffs on $110 billion worth of American exports.

Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), widely viewed as barometers of trade given their large international exposure, fell 1%, dragging industrials lower.

Beyond trade, falling energy stocks deepened losses in the broader market as U.S. oil prices fell 2% on fears that a prolonged U.S.-China trade war could hurt global oil demand growth, pressuring prices.

Tech stocks, meanwhile, were led sharply lower by a plunge in Twitter.

Twitter (NYSE:TWTR) fell 9.8% as the company’s better-than-expected quarterly results played second fiddle to first-quarter guidance, which fell short of estimates.

Other social media companies, including Facebook (NASDAQ:FB) and Snap (NYSE:SNAP), also ended the day in the red.

Elsewhere in tech, Apple's (NASDAQ:AAPL) health team reportedly hired an obstetrician, Dr. Christine Curry, in a bid to boost its profile in Women's Health, CNBC reported.

Apple CEO Tim Cook, earlier this year, identified health care as a growing priority for the tech giant at a time when demand for its iPhones, which make up more than half of total sales, is feared to have peaked.

There were a few bright spots on the earnings front as Chipotle and Fiat Clyster delivered earnings that beat the consensus compiled by Investing.com.

In other corporates news, SunTrust Banks (NYSE:STI) jumped after agreeing to be bought by BB&T (NYSE:BBT) in a deal valued at about $66 billion, creating the sixth-largest U.S. bank.

Top S&P 500 Gainers and Losers Today:

Hanesbrands (NYSE:HBI), Chipotle Mexican Grill (NYSE:CMG) and SunTrust Banks (NYSE:STI) were among the top S&P 500 gainers for the session.

Tapestry (NYSE:TPR), Twitter (NYSE:TWTR) and Alliance Data Systems (NYSE:ADS) were among the worst S&P 500 performers of the session.

Stocks - Dow Drops More than 200 as Trade Concerns Trigger Selloff
 

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Paul Tan
Paul Tan Feb 07, 2019 8:51PM ET
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One person has been creating so much uncertainty in the entire history of capital market.
Gregg Sawdy
Gregg Sawdy Feb 07, 2019 5:20PM ET
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It's a bear market correction. The bull is finished!
Paul Kalaitzidis
Paul Kalaitzidis Feb 07, 2019 4:18PM ET
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Dont think tarrifs will go back up to 25%; will extend.
Itachi Uchiha
Vi5uAnalyst Feb 07, 2019 4:18PM ET
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Why do you think that? I am curious.
David Bowie
Defcon2 Feb 07, 2019 4:18PM ET
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We'll know soon enough.
 
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