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Financial Markets 10/14 09:33
NEW YORK (AP) -- Stocks slumped in morning trading on Wall Street Tuesday as
trade tensions escalate again with China.
The S&P 500 fell 1%. The Dow Jones Industrial Average slipped 383 points, or
0.8%, as of 9:57 a.m. Eastern time. The Nasdaq composite shed 1.5%.
The slide marks another sharp twist for markets over the last few days. Wall
Street tumbled on Friday for its worst day since April and bounced back on
Monday for its best day since May. The swings were prompted by shifting trade
sentiment between the U.S. and China.
The latest dip follows China's Commerce Ministry banning dealings by Chinese
companies with five subsidiaries of South Korean shipbuilder Hanwha Ocean,
swiping at President Donald Trump's efforts to rebuild the industry in America.
European markets were lower and Asian markets fell.
The ongoing trade war between the U.S. and the world has been an
unpredictable weight on the market. The trade conflict between the U.S. and
China is potentially the most economically consequential, owing to those
nations' positions as the two largest economies in the world.
International shipping and shipbuilding have become a major source of
friction between Washington and Beijing, with each side imposing new port fees
on each others' vessels. Those fees went into effect on Tuesday.
The U.S. economy has so far dodged any major impact from the broad and
constantly shifting U.S. tariff policy. That could change if nations fall back
into a cycle of retaliatory tariffs and companies pass along more of the higher
costs to consumers.
The U.S. government shutdown has put a halt to the usual economic updates on
inflation, consumer spending and job growth. Wall Street is looking toward the
latest round of company earnings and forecasts to get a better sense of the
broader economic picture.
JPMorgan Chase slipped 3.8%, despite beating Wall Street's profit forecasts
for its latest quarter. Wells Fargo rose 3.5% after beating analysts' forecasts.
Health care giant Johnson & Johnson fell 1.8% after announcing that it will
separate its orthopedics business into a standalone company.
Treasury yields held relatively steady. The yield on the yield on the
10-year Treasury fell to 4.04% from 4.05% late Friday. Bond markets were closed
in the U.S. on Monday for a holiday.
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AP writers Yuri Kageyama and Matt Ott contributed to this report.
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