Investing.com – Wall Street tumbled on Tuesday after reports that the White House is moving ahead on possible curbs to capital flows in China stirred up fresh concerns that a trade deal between the two countries won’t happen.
The Dow slumped 263 points or 1% by 9:40 AM ET (13:40 GMT), while the S&P 500 was down 30 points or 1.1% and the Nasdaq composite lost 77 points or 1%.
The two sides are scheduled for high-level trade talks this week. Yesterday after the U.S. blacklisted 28 Chinese entities, including surveillance camera maker Hikvision, for their role in China’s repression of Muslim minorities.
Meanwhile, the White House is in talks around restrictions focused on investments made by U.S. government pension funds, according to a Bloomberg report.
"I don't think there's really much hope that we are going to see a completed deal any time soon," said Scott Brown, chief economist at Raymond James. "For markets, it may be enough to just see a stop in the escalation."
Boeing (NYSE:BA) was down 1.5% on a Wall Street Journal report that the European Aviation Safety Agency refused to accept FAA assurances that Boeing’s Max 737 are safe.
Domino’s Pizza (NYSE:DPZ) dipped 4.2% after a decline in same-store sales, while Oracle (NYSE:ORCL) fell 1% after reports that it is hiring 2,000 workers. Ambarella (NASDAQ:AMBA) tumbled 9.4% after the blacklisting of Hikvision Digital Technology, one of its biggest customers.
In commodities, the U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 98.662 and gold futures rose 0.6% to $1,512.85 a troy ounce. Crude oil futures fell 13% to $52.09 a barrel.
-- Reuters contributed to this report