Trade tensions hit stocks

Industrial companies, banks fall amid continuing investor worries

U.S. stocks sank again Wednesday as investors worried about tariffs and rising trade tensions. That hurt industrial companies, while banks slumped along with interest rates.

Stocks rose in the morning as investors looked for a rebound from the previous day’s losses, but with European leaders warning about the risks of trade disputes, indexes gradually headed lower. Boeing and other industrial companies, including airlines and defense companies, took some of the worst losses.

Stocks have bounced around since President Donald Trump announced his tariff plans at the start of this month. They slumped at first, but came back after the administration said it would grant exemptions to some countries. They’ve slipped over the last two days as investors considered the possibility of greater trade tensions with Europe and China.

“Since the correction, investors have been a little bit more sensitive to risk,” said Karyn Cavanaugh, senior market strategist at Voya Investment Strategies. “Before the correction, investors were almost bulletproof.”

The S&P 500 index lost 15.83 points, or 0.6 percent, to 2,749.48. The Dow Jones industrial average lost 248.91 points, or 1 percent, to 24,758.12. The Dow is comprised of 30 large multinational companies, some of which will feel a pinch from higher metals costs or from tariffs that may be placed on U.S.-made goods.

The Nasdaq composite fell 14.20 points, or 0.2 percent, to 7,496.81. The Russell 2000 index of smallercompany stocks declined 7.74 points, or 0.5 percent, to 1,584.31.

Aerospace and defense giant Boeing slid $8.41, or 2.5 percent, to $330.26. Arconic, which uses a lot of aluminum in making products for aerospace companies, lost 89 cents, or 3.6 percent, to $24.06. Defense contractors including Raytheon also declined, as did airlines.

Signet Jewelers plunged after the jewelry retailer gave profit and sales forecasts that were weaker than analysts expected. Signet also said it intends to cut at least $200 million in spending and will sell its non-prime credit receivables. It will take a loss of about $170 million on that sale. The stock dropped $9.69, or 20.2 percent, to $38.22.

Tesla declined after Bloomberg News reported that a second senior finance executive resigned. Bloomberg said Treasurer Susan Repo left to become chief financial officer at another company.

Tesla slipped $15.21, or 4.4 percent, to $326.63.

Benchmark U.S. crude gained 25 cents to $60.96 a barrel in New York. Brent crude, used to price international oils, added 25 cents to $64.89 per barrel in London.