Wall Street’s rally ran out of fuel in the last hour of trading on Thursday, and the market fell to its first loss in four …
Wall Street’s rally ran out of fuel in the last hour of trading on Thursday, and the market fell to its first loss in four days amid worries about rising U. S.-China tensions.
The S&P 500 had been climbing for much of the day and was up as much as 1.1% at one point. But it all disappeared after President Donald Trump said he’ll hold a news conference about China on Friday. That raised immediate worries among investors about possibly worsening relations between the world’s largest economies, which had signed a deal earlier this year to at least pause their trade war.
“The concerns are that this escalates over the course of the summer,” said Quincy Krosby, chief market strategist at Prudential Financial. “It’s like lighting a match.”
The S&P 500 ended the day down 6.40, or 0.2%, at 3,029.73. The Dow Jones Industrial Average swung from a gain of 210 points to a loss of 147.63 by the close of trading, down 0.6% to 25,400.64. The Nasdaq composite fell 43.37, or 0.5%, to 9,368.99.
U. S. and Chinese officials have been trading harsh rhetoric recently on everything from Hong Kong to the response to the coronavirus outbreak. Investors are worried that it could lead to another punishing round of escalating tariffs between the two countries, which would only further damage a global economy punished by a severe recession due to the pandemic.
Energy producers and banks fell to some of Thursday’s sharpest losses.
Twitter also lost 4.4%. Trump signed an executive order late Thursday to study whether new regulations can be put on social media companies.
