NEW YORK (Reuters) – U.S. shares ended close to flat and the Dow snapped a six-day profitable streak on Tuesday, as traders paused following a run of positive factors and recent worries emerged over the U.S. commerce warfare with China.
President Donald Trump mentioned Tuesday he was holding up a commerce cope with China and had little interest in shifting forward, except Beijing agrees to 4 or 5 “main factors” which he didn’t specify.
Individually, Trump mentioned he would impose extra tariffs on Chinese language imports if there was no progress in talks with Chinese language President Xi Jinping on the Group of 20 summit later this month.
Shares had been principally greater in early buying and selling amid lingering optimism over Trump’s choice late on Friday to carry off import tariffs on Mexico.
“Commerce sentiment is driving every part,” mentioned Chris Zaccarelli, chief funding officer at Unbiased Advisor Alliance in Charlotte, North Carolina.
“What we’re seeing right now is the extra pessimistic view on what may occur by the tip of the month. Most promoting within the month of Might could possibly be put right down to China and Mexico.”
Traders additionally could also be reluctant to push shares greater and not using a recent catalyst for assist, some strategists mentioned.
Information confirmed U.S. producer costs elevated solidly for a second straight month in Might, in keeping with expectations of economists polled by Reuters, pointing to a gradual pickup in underlying inflation pressures.
Industrials and utilities indexes led the way in which decrease Tuesday, with the S&P 500 industrial index falling 0.9%, weighed down by losses in United Applied sciences Corp and Raytheon Co.
The Dow Jones Industrial Common fell 14.17 factors, or 0.05%, to 26,048.51, the S&P 500 misplaced 1.01 factors, or 0.03%, to 2,885.72 and the Nasdaq Composite dropped 0.60 factors, or 0.01%, to 7,822.57.
Current optimism over commerce tensions and the prospect of an rate of interest reduce by the Federal Reserve had helped shares rally in latest classes. The benchmark S&P 500 is simply 2% away from its early Might all-time excessive.
The market is betting the Fed will reduce rates of interest in July and reduce two extra instances this yr as Trump’s arduous bargaining on commerce with Beijing and others might push the financial system again into recession.
United Applied sciences fell 4% and Raytheon shed 5.1%, a day after Trump gave blended indicators on whether or not he believed the $121 billion merger between the businesses ought to go ahead. On Monday, Raytheon edged greater whereas United Applied sciences misplaced 3.1%.
The S&P utilities index on Tuesday was down 0.7%.
Symantec Corp fell after Morgan Stanley downgraded the antivirus software program maker’s inventory, citing elevated competitors.
Advancing points outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.19-to-1 ratio favored decliners.
The S&P 500 posted 53 new 52-week highs and three new lows; the Nasdaq Composite recorded 54 new highs and 88 new lows.
Quantity on U.S. exchanges was 6.76 billion shares, in comparison with about 6.92 billion common for the complete session during the last 20 buying and selling days.
Reporting by Caroline Valetkevitch; Further reporting by Sinead Carew in New York and Aparajita Saxena and Shreyashi Sanyal in Bengaluru; Modifying by Leslie Adler and Tom Brown