Wall Street Rocked by Trade Jitters as Stocks Fall
A renewed bout of volatility gripped Wall Street, with stocks closing at the lowest level since September amid concerns about the impacts of a trade war on the economy.
Just minutes after erasing a 1.5% slide on hopes for a Ukraine-Russia truce, the S&P 500 resumed its slide. While a rebound in megacaps like Tesla Inc. and Nvidia Corp. drove the market away from session lows, the vast majority of shares in the US equity benchmark retreated. The measure briefly breached the threshold of a technical correction, while closing 9.3% below its all-time high.
“Even if the majority of this drawdown is potentially behind us, volatility may not be, and there’s a good chance the market could chop sideways for a while,” said Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research & Strategy Team.
President Donald Trump said he was reevaluating plans to double steel and aluminum tariffs on Canada to 50% after Ontario announced it would suspend a 25% surcharge on electricity sent to the US. A widening trade war between the US and Canada has rocked markets and hung a cloud of uncertainty across major North American industries.
The S&P 500 fell 0.8%. The Nasdaq 100 slid 0.3%. The Dow Jones Industrial Average sank 1.1%.
The yield on 10-year Treasuries advanced six basis points to 4.28%. The Bloomberg Dollar Spot Index fell 0.4%.
Source : Bloomberg
