US: Stocks fall as markets monitor trade talks

[NEW YORK] Wall Street stocks retreated on Tuesday as markets monitored ongoing trade talks ahead of new tariff hikes set to take effect later this week.

US stocks initially looked poised to extend Monday’s rally, but soon tumbled into negative territory.

“We’re struggling for direction right now,” said Adam Sarhan of 50 Park Investments. “After a big move up over the last few weeks, it’s perfectly normal and healthy to see the market consolidate or go sideways a little bit.”

The Dow Jones Industrial Average finished down 0.1 per cent at 44,111.74.

The broad-based S&P 500 dropped 0.5 per cent to 6,299.19, while the tech-rich Nasdaq Composite Index shed 0.7 per cent to 20,916.55.

US President Donald Trump told CNBC he plans fresh tariffs on imported pharmaceuticals and semiconductors.

The statement comes before a separate set of tariff hikes goes into force on dozens of economies later this week. Swiss officials traveled to Washington on Tuesday to try to strike a last-minute deal.

Sarhan said investors are adjusting to a weakening economic outlook after last week’s July jobs report pointed to slowing in the labor market.

On the positive side, “a weaker economy could mean more rate cuts from the Fed,” Sarhan said.

SEE ALSO

US: Wall Street opens higher on rate cut hopes; earnings in spotlight

Among individual companies, Palantir Technologies jumped 7.8 per cent after reporting its first quarter with more than US$1 billion in revenue. The data analysis and artificial intelligence company also raised its full-year revenues forecast.

Pfizer was another big winner after earnings as the drugmaker reported a big increase in profits to US$2.9 billion behind higher sales of Covid-19 products and lower expenses. AFP