Breaking News

Dow sheds 250 points as trade war worries weigh on industrials

Stock MarketsMar 14, 2018 12:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York

By Sruthi Shankar

(Reuters) - The Dow Jones Industrial Average shed more than 250 points on Wednesday as U.S. manufacturers continued to suffer from concerns over the impact of new tariffs on trade.

Boeing's (N:BA) 4 percent fall contributed to about 100 points drop in the blue-chip index, with traders citing continuing fallout from Tuesday's reports that U.S. President Donald Trump could impose tariffs on up to $60 billion of Chinese imports.

"Governments in general are in a wait-and-see mode to find out what is going to be the outcome of the negotiations," said Paul Springmeyer, investment managing director at U.S. Bank Private Wealth Management.

The Trump administration is pressing China to cut its trade surplus with the United States by $100 billion, a White House spokeswoman said on Wednesday.

"There's every situation that's being looked at now, whether it's tariffs or not with a new eye, in terms of how one would deal with United States moving forward."

Major U.S. manufacturers have been the heaviest hit since Trump trailered and then announced tariffs on steel and aluminum imports earlier this month.

The issue overshadowed China's report that its factory output grew much faster than expected at the start of the year, suggesting the world's second largest economy may be picking up speed.

By 11:51 a.m. ET, the Dow Jones Industrial Average (DJI) was down 257.31 points, or 1.03 percent, at 24,749.72. The S&P 500 (SPX) fell 0.46 percent to 2,752.71 and the Nasdaq Composite (IXIC) dropped 0.32 percent to 7,487.06.

The third straight monthly fall in retail sales pointed to slowing U.S. growth but cooled concerns of Federal Reserve raising interest rates at a faster pace in 2018.

Following the data, J.P. Morgan analysts lowered their first-quarter gross domestic product growth estimate to 2 percent from 2.5 percent.

Financial stocks (SPSY) fell 0.37 percent, tracking a decline in U.S. bond yields on the back of soft retail sales data.

Shares of department store operators Kohl's (N:KSS) fell 2.9 percent, while Macy's (N:M) and Nordstrom (N:JWN) dropped more than 1 percent.

Shares in Qualcomm fell about 3 percent and those in rival Broadcom (NASDAQ:AVGO) declined 0.5 percent after the Singapore-based chipmaker formally withdrew its bid for Qualcomm Inc (O:QCOM) but said it would pursue other targets.

Signet Jewelers (N:SIG) fell about 17 percent after the company reported lower same-store sales in the fourth quarter.

Declining issues outnumbered advancers on the NYSE by 1,454 to 1,293. On the Nasdaq, 1,506 issues fell and 1,197 advanced.

Dow sheds 250 points as trade war worries weigh on industrials

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email