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- US stocks come under pressure as hopes for progress in trade talks soured
US stocks come under pressure as hopes for progress in trade talks soured
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Loading...U.S. stocks fell on Tuesday as hopes of progress in high-level trade talks were dashed by a report Washington was moving ahead with efforts to limit capital flows to China and the inclusion of some top Chinese startups to a blacklist.
The declines were broad-based, with all the 11 major S&P 500 sectors trading lower and 28 of the 30 components of the blue-chip Dow Jones index in negative territory.
The developments weighed on the fragile sentiment fueled by a South China Morning Post report that said China had toned down expectations ahead of the high-level talks, and that the Chinese delegation could depart a day earlier than planned.
The reports hit just as U.S. and Chinese deputy trade negotiators geared up to meet in Washington for a second day of talks on Tuesday, with high-level discussions scheduled to start on Thursday.
The U.S. widened its trade blacklist to include Chinese video surveillance firm Hikvision (SZ:002415) and surveillance equipment maker Zhejiang Dahua Technology (SZ:002236) among others, drawing a sharp rebuke from Beijing.
This pressured U.S. suppliers. Intel Corp (O:INTC), Nvidia Corp (O:NVDA), Western Digital (O:WDC) and Seagate Technology (O:STX) fell between 1% and 3.6%, while Ambarella Inc (O:AMBA) declined 8.6%.
Despite the day's declines, the indexes were trading above last week's lows, when a contraction in U.S. manufacturing and a dismal reading on business activity sparked fears of a looming recession in the world's biggest economy.
Investors will now focus on third-quarter earnings season beginning next week and analysts expect the worst quarterly profit performance since 2016, with earnings from S&P 500 companies declining nearly 3% from a year earlier, based on IBES data from Refinitiv.
Trader Georgi Bozhidarov Read more:
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