April 20, 2018

Wall Street recovers from sharp losses sparked by China tariffs

05 April 2018, 12:54 | Lionel James

Wall Street recovers from sharp losses sparked by China tariffs

Wall Street recovers from sharp losses sparked by China tariffs

Manufacturing stocks also stumbled after China slapped tariffs of up to 25 percent on 128 American-made products in response to the Trump administration's decision to place steep duties on imported steel and aluminum.

"Because recent lows in the market have held, people may feel a bit more comfortable buying the dip, even though nothing has changed or been resolved", he said.

Advancing issues outnumbered declining ones on the NYSE by a 2.98-to-1 ratio; on Nasdaq, a 1.86-to-1 ratio favored advancers.

Boeing was down in premarket action by about 5 percent and Caterpillar shares were off some 3.5%.

While manufacturers were the bigger losers as a group, the technology sector's 1.74 percent drop weighed the most on the market. Processing company ADP said USA employers created a higher-than-expected 241,000 in March. The S&P 500 index gained 30 points to 2,645, or 1.2%. France's CAC fell by 0.60% and Germany's DAX dropped 1.22%.

USA stocks rallied in afternoon trading, reaching positive territory after plummeting earlier amid reports that China is planning to retaliate against the United States in an escalating trade conflict that has investors around the world on edge.

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More incidents are likely to crop up, some Facebook executives fear. "I'm not sure we shouldn't be regulated", he said to CNN. The memo to employees reiterated the company's desire to connect people with one another, but not without a price.

Stocks open with large losses follows China's announcement of additional tariffs on $50B in USA imports including soybeans, planes, autos and chemicals; Dow -1.6%, S&P -1.2%, Nasdaq -1.2%.

Volume on US exchanges was 7.04 billion shares, compared with the 7.3 billion average for the last 20 trading days.

"As a sector, technology has the most to lose from a world in which global trade is restricted and of course, some of the subjects of the tariffs, will also be hit", said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey. Late Tuesday, the maker of electric cars reported first-quarter production and delivery numbers that missed expectations (, but said it would not need to raise more money this year.

Stocks have fluctuated over the course of the trading session on Tuesday and are seeing moderate strength in mid-day trading.

Over on the Nasdaq, Viacom shares fell further by 4.42% on reports that the all-share offering, which CBS is proposing as part of its merger, will fall below Viacom's current market value. Viacom shares rose 3.9%.

The choppy trading since then comes as traders look ahead to the release of the Labor Department's closely watched monthly jobs report on Friday. Amazon (NASDAQ:AMZN) added 1.52% to US$1,392.80.

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