United States stocks tumble amid worries over possible economic slowdown

Traders work on the floor of the New York Stock Exchange. Dec. 3 2018. Brendan McDermid Reuters

Traders work on the floor of the New York Stock Exchange. Dec. 3 2018. Brendan McDermid Reuters

Stock indexes fell in midday trading on Wall Street, giving back much of the market's gain from the day before.

Stocks had rallied on Monday following a truce between U.S. President Donald Trump and Chinese President Xi Jinping on their trade dispute following weekend talks in Argentina, but investor optimism over a resolution faded on Tuesday.

The Dow Jones Industrial Average slipped by 2.5pc mid-session on Tuesday, with industrial companies and financials leading the declines.

At 1:16 pm ET the Dow Jones was down 565.16 points at 25,261.27, the S&P 500 was down 62.55 points at 2,727.82 and the Nasdaq was down 196.65 points at 7,244.86.

The Nasdaq composite lost 283.09 points, or 3.8 percent, to 7,158.43. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. Brent crude, used to price global oils, lost 63 cents to $61.45 per barrel in London.

The US stock and bond markets will be closed on Wednesday to mourn the death of former US President George H.W. Bush. Shares also fell in Taiwan and all other regional markets.

Declining issues outnumbered advancing ones on the NYSE by a 4.24-to-1 ratio; on Nasdaq, a 5.96-to-1 ratio favoured decliners.

The trade dispute has rattled markets in recent months as signs emerged that it has begun affecting corporate profits. The fall is sparking fears of an economic slowdown.

The Dow Jones Transport Average .DJT declined 4.4 percent, its biggest one-day percentage drop since June 2016. Advanced Micro Devices dropped 9.4 per cent to $21.49, while Micron Technology lost 6.4 per cent to $37.47. Morgan Stanley analysts said in a note that the market was underestimating the challenge those companies would face from Amazon Air.

OPEC'S MOVE: OPEC countries gathered Thursday to find a way to support the falling price of oil, with analysts predicting the cartel and some key allies, like Russian Federation, would agree to cut production by at least 1 million barrels per day. Benchmark U.S. crude rose 0.6 percent to $53.27 per barrel in NY. Brent crude, used to price global oils, dropped $1.48 to $60.08 per barrel.

The dollar weakened to 112.82 yen from 113.69 yen late Monday. The euro was flat at $1.1345. The British pound fell to $1.2716 from $1.2728.

Apple shares fell 4.40 percent in intraday trading after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies.

European markets fell on Tuesday, with Germany's DAX losing 1.1 percent and France's CAC 40 dropping 0.8 percent.

Gold gained 0.6 percent to $1,246.60 an ounce.

Recommended News

  • Canada arrests CFO of China's Huawei Technologies

    Canada arrests CFO of China's Huawei Technologies

    Huawei's smaller rival ZTE Corp pleaded guilty past year to conspiring to evade embargoes by selling US equipment to Iran. CNN , quoting an unnamed official, said that the United States saw the arrest as providing leverage in trade talks.
    May's Brexit deal under fire as legal advice stiffens opposition

    May's Brexit deal under fire as legal advice stiffens opposition

    Opening a third day of debate, Mr Hammond told the Commons a no-deal Brexit would be "too bad to contemplate". It is a vote in which the future of their country is at stake", he said.
    Ubisoft teases post-apocalyptic Far Cry project

    Ubisoft teases post-apocalyptic Far Cry project

    In other words, I don't expect the company to announce Far Cry 6 (it's not impossible but I will really be surprised if it does). The next Far Cry game is set in a post-apocalyptic future, set after the events of Far Cry 5 going by the teaser shown.
  • Liverpool to face Wolves in FA Cup third round

    Liverpool to face Wolves in FA Cup third round

    The Gunners have been drawn away to either Moors or the Tangerines, who drew their initial second round tie on Friday night. Manchester United will host Reading at the Old Trafford as the FA Cup games begin next year January 4 and 7.
    HBO Drops First 'Game Of Thrones' Season 8 Trailer

    HBO Drops First 'Game Of Thrones' Season 8 Trailer

    Winter is almost here! The teaser was first shown at a " Game of Thrones " panel at Comic Con Experience (CCXP) in Brazil . Game of Thrones season 7 ended with the Night King breaking down The Wall by melting it with the dragon's fire.

    "Crazy, Wrecking Ball": US Senators Blast Saudi Prince Over Khashoggi

    Chris Murphy, a Democrat Connecticut who co-sponsored a bipartisan resolution calling for an end to the U.S. role in Yemen. The US continues to provide Saudi Arabia with weapons and intelligence despite the atrocities in Yemen.
  • 1st baby born using uterus transplanted from deceased donor

    1st baby born using uterus transplanted from deceased donor

    Some who were born without a uterus, other had unexplained malformations, of sustained damaged during childbirth or infection. Before the transplant, the woman underwent in vitro fertilization, resulting in eight fertilized eggs that were frozen.
    Donald Trump Has

    Donald Trump Has "Puzzled and Irritated" China on Trade, Report Claims

    General Motors , which not only exports some models to China but also imports the Chinese-made Envision SUV, fell 5 percent to $36.52 a share.
    Newlywed Priyanka Chopra responds to article labelling her a 'global scam artist'

    Newlywed Priyanka Chopra responds to article labelling her a 'global scam artist'

    Priyanka Chopra had responded to an article calling her a " global scam artist " in the wake of her marriage to Nick Jonas . Nick Jonas has never shied away from flirting with his Lady Love on social media.And the reception night was no different.
  • Chris Evans could return as Captain America after 'Avengers 4'

    Chris Evans could return as Captain America after 'Avengers 4'

    Joe and Anthony Russo , directors of Avengers: Infinity War and Avengers 4 , will be presenters at The Game Awards next week. Maybe, but Evans and the rest of the cast still have a few months to flip-flop on the issue before we all know for sure.
    REx arrives at Bennu asteroid, sends back fly-in images

    REx arrives at Bennu asteroid, sends back fly-in images

    This ensures that the solar radiation pressure remains constant, so engineers can make sure they continuously counteract it. Its orbit switches between those of Earth and Mars, making it what's officially called a "near-Earth asteroid".
    Reserve Bank of India Keeps Repo Rates On Hold

    Reserve Bank of India Keeps Repo Rates On Hold

    This is for the second time in a row that the central bank did not tinker with the interest rate. The central bank has retained the GDP growth projection for 2018-19 at 7.4 per cent.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.