Stocks in retreat over trade worries
U.S. stocks pared losses Tuesday in the final hour of trading after trade jitters sent major averages tumbling earlier in the day.
Concerns that a trade deal with China could be delayed sent stocks lower for a third consecutive session. The Dow Jones industrial average closed 280 points lower after the bluechip index shed more than 400 points in morning trading. The broader Standard & Poor's 500 and the Nasdaq Composite fell 0.7% and 0.6%, respectively.
Major averages have retreated from last week’s record highs because of fresh trade worries and weaker-than-expected U.S. manufacturing data. Investor concerns grew Tuesday after President Donald Trump suggested that a trade deal with China could be delayed beyond the presidential election in 2020.
“In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now, and we will see whether or not the deal is going to be right,” Trump told reporters in London at a NATO summit.
Heightened trade fears come a day after Trump threatened new tariffs on several more countries. On Monday, the president said he would raise tariffs on steel and aluminum imports from Brazil and Argentina.
Washington and Beijing have imposed tariffs on billions of dollars’ worth of each other’s goods since the beginning of 2018, rattling investors.
In recent months, however, optimism over a possible “phase one” trade deal has helped boost investors’ appetite for risky assets. Betterthan-expected corporate earnings, a strong labor force and firming housing data have also eased fears about a slowdown in U.S. growth.