United States stocks slide on China trade concerns and fears of weakening growth

United States stocks slide on China trade concerns and fears of weakening growth

The Dow Jones Industrial Average decreased 799.36 points, or 3.10 percent, to 25,027.07.

The Dow Jones slid 3.1 per cent, the S&P 500 3.2 per cent, and the Nasdaq 3.8 per cent, leading to one U.S. stocks ETF (Exchange Traded Fund) managed by Russell Investments experiencing its largest one-day drop since 2011. The Nasdaq Composite closed at 7,158.43 for a loss of 283.09 points or -3.80%.

Among other Dow components that plunged were Caterpillar, Boeing and Intel which declined 6.93 percent, 4.85 percent and 4.75 percent respectively.

US stocks opened lower on Tuesday, as investors turned skeptical of the chances of a breakthrough in the US-China trade talks, while a flattening US yield curve raised fears of a slowing domestic economy.

The bond market signaled its concerns as the gap between two-year and 10-year Treasurys reached its narrowest difference since 2007. On Monday, the three-year Treasury yield also exceeded the five-year. Tuesday's bearish market erased the 420 point rally on Monday after a major selloff. The Russell 2000 index gave up 68.21 points, or 4.4 percent, to 1,480.75. The S&P 600 closed at 925.06 for a loss of 44.71 points or -4.61%.

The Dow is down 511.39 points, or 2 percent. Shares had rallied Monday following President Donald Trump's agreement with his Chinese counterpart Xi Jinping over the weekend to hold off on further retaliatory moves in a festering trade war.

OPEC'S MOVE: OPEC countries gathered Thursday to find a way to support the falling price of oil, with analysts predicting the cartel and some key allies, like Russian Federation, would agree to cut production by at least 1 million barrels per day. US futures also augured a downbeat start for Wall Street after markets were closed Wednesday to mourn the death of former President George H.W. Bush.

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The Nasdaq is down 172.11 points, or 2.3 per cent. Benchmark U.S. crude rose 0.6 percent to $53.27 per barrel in NY. Brent crude, used to price global oils, lost 63 cents to $61.45 per barrel in London. Hovnanian Enterprises led most builders lower, giving up 10.3 percent to $1.10.

CURRENCY: The dollar gained to 112.95 yen from Wednesday's 112.78 yen. The euro strengthened to $1.1349 from $1.1342. The British pound fell to $1.2716 from $1.2728.

European markets fell on Tuesday, with Germany's DAX losing 1.1 percent and France's CAC 40 dropping 0.8 percent.

Wholesale gasoline gained 0.8 percent to $1.44 a gallon. Hong Kong's Hang Seng added 0.3 percent.

The financials sector edged down 1.7 per cent. Bank of Montreal fell 3.5 per cent, after Canada's fourth-biggest lender reported fourth-quarter earnings, ending a mixed earnings season for Canada's biggest banks.

The Dow lost 574 points, or 2.2 percent, to 25,253.

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