You are here

US: Dow, S&P 500 fall on latest US-China trade barbs

BP_NYSE_250918_8.jpg

[NEW YORK] The latest escalation in the US-China trade row weighed on industrial stocks on Monday, pushing the Dow and S&P 500 lower.

The Dow Jones Industrial Average finished down 0.7 per cent at 26,562.05.

The broad-based S&P 500 dropped 0.4 per cent to 2,919.25, while the tech-rich Nasdaq Composite Index gained 0.1 per cent to 7,993.25.

New US tariffs on another US$200 billion of Chinese imports took effect Monday, a move that prompted retaliatory tariffs from Beijing on US$60 billion in American goods.

China has also reportedly scotched negotiations that had been expected later this week in another twist that was likely to dent investor hopes for a speedy resolution to the impasse.

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

Industrial companies generally lagged the broader market, with Caterpillar losing 1.5 per cent, Arconic 5.5 per cent and Stanley Black & Decker 1.9 per cent.

Analysts are also watching for Wednesday's Federal Reserve decision, which is expected to result in an interest rate increase.

In deal news, Comcast won a weekend bidding contest with Fox for British broadcaster Sky for 30.6 billion pounds (S$54.7 billion). Comcast shares sank 6.0 per cent, while Fox rose 1.7 per cent.

Pandora Media shed 1.2 per cent after agreeing to be acquired by SiriusXM for US$3.5 billion. Sirius sank 10.3 per cent.

US-traded shares of Barrick Gold of Canada jumped 5.4 per cent after it agreed to buy Africa-focused rival Randgold Resources to create a global industry champion worth US$18.3 billion. Randgold rose 6.6 per cent in New York.

Clothing and accessories company Michael Kors dropped 8.2 per cent following reports it is close to a deal to buy Versace for US$2 billion or more, its latest push into luxury.

Shares of oil giants Exxon Mobil and Chevron both climbed more than one per cent as oil prices rallied from a decision by major oil producers over the weekend not to increase output.

AFP

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes