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US: S&P 500 winning streak ends amid latest trade flare-up
[NEW YORK] The S&P 500's eight-day winning streak ended with a thud on Tuesday following President Donald Trump's latest trade war threat amid caution over upcoming earnings reports.
The S&P 500, a broad-based index of US companies, finished down 0.6 pe rcent at 2,878.20.
The Dow Jones Industrial Average shed 0.7 per cent to 26,150.58, while the tech-rich Nasdaq Composite Index declined 0.6 per cent to 7,909.28.
Analysts have been warning of a retreat in stocks following the heady start to the year, especially in light of the upcoming earnings season, which is expected to be weaker than in recent quarters.
Mr Trump also gave markets another trade-related worry, threatening billions in tariffs on European imports in retaliation for subsidies to the aviation giant Airbus.
The statement signaled the White House could pivot to a tough negotiation with Europe if it soon resolves a months-long trade dispute with China.
"Most people were happy we were likely close to a resolution to the trade dispute with China," said CFRA Research chief investment strategist Sam Stovall. "We now have to endure a trade dispute with Europe."
The trade threat came as the International Monetary Fund trimmed its 2019 global growth forecast to 3.3 per cent from 3.5 per cent, citing downside risks associated with Brexit, yawning trade talks and other factors.
Among individual companies, Boeing dropped 1.4 per cent after reporting a 19 per cent fall in first-quarter commercial plane deliveries following the global grounding of the 737 Max planes after two deadly crashes.
American Airlines shed 1.7 per cent after it cut a key revenue benchmark in a first-quarter forecast, citing the hit from the Boeing 737 Max grounding, among other factors.
American Airlines canceled some 1,200 flights in the first quarter due to the grounding and has cancelled additional flights through June 5, expecting that the plane will remain grounded by the Federal Aviation Administration.
Wynn Resorts lost 3.9 per cent as it pulled the plug on discussions to potentially acquire Australian gambling giant Crown Resorts.