Stocks mixed after sell-off as trade worries linger
US stocks fluctuated after the biggest sell-off since April, as investors assessed the outlook for trade and its implications on global growth. Treasuries turned lower and the dollar rose.
The S&P 500 Index gyrated at its 50-day moving average, while the Dow Jones Industrial Average clung to an early advance. Technology shares, hit hardest on Monday, bounced back to give the Nasdaq solid gains. Harley-Davidson Inc slumped as President Donald Trump railed against the motorcycle maker for planning to move production abroad. In Asia, Chinese equities entered a bear market on concern about the country’s ability to fight a trade war.
Trade remained front and centre yesterday as investors await more clarity from the White House on its plans. National Trade Council Director Peter Navarro contradicted comments from the Treasury regarding Chinese investment in the US. Europe and China look set to dig in against aggressive trade threats, which are increasingly showing up in business.
“It’s taken a long time for the markets to feel like the trade commentary that’s been coming, particularly out of the US, had some meaning and so what we are seeing investors doing is finally taking a look at this and saying something might actually happen,” Sheila Patel, CEO of Goldman Sachs Asset Management’s international division, said.