Wall Street indexes declined against new US duties
Wall Street indexes declined on Wednesday after the trade war between the United States and other major economies has intensified and the Trump administration has imposed new customs duties on Chinese goods.
The blue chip index Dow Jones wiped out 219.21 points of its value, ending its four-day winning streak. Within the index, Caterpillar, DowDuPont and Chevron were the worst performers. The broad benchmark S&P 500 moved into red territory by 0.71% after the energy sector dropped by more than 2%. The technological index Nasdaq Composite reported a decline of 0.55%.
The administration of the US President Donald Trump published a list of Chinese goods, on which will be imported 10% duty. The total value of the goods amounts to 200 billion USD. Customs duties will not enter into force immediately, but will be subject to a review process, with more clarity provided in the middle or end of August.
The latest news for the trade war came after bilateral tariffs imposed by the US and China, each covering goods with annual turnover 34 billion USD.
The shares of Boeing and Caterpillar (both companies with large exposures abroad) declined by 1.9% and 3.2%, respectively. Nvidia, Intel and Advanced Micro Devices (AMD) chip makers reported a decline in their stock price of over 1.5%.
The overall profit of the corporations is expected to grow by 20% in the three months from April to June. Already more than 20 companies in the S&P 500 index published their quarterly data, including PepsiCo. Citigroup, J.P. Morgan Chase, Wells Fargo and Delta Air Lines will submit their data later this week.
On Wednesday, the medicine producers' stocks also declined after Pfizer said it would postpone the price increase after talks with Donald Trump. Thus, Pfizer, Biogen and Merck recorded a 0.6%, 0.2% and 0.6% decline in their stock price.
Shares of American Airlines fell by nearly 8% after the company cut its forecast for revenue growth in the second quarter.
In commodity markets, the crude oil prices have been in a free fall, sending out their worst day for more than one year. The futures on US crude oil fell by 4.60% to 70.70 USD per barrel. The Brent oil drops by nearly 6% to 74.16 USD per barrel.
Posted from my blog with SteemPress : http://financeandmarkets.com/wall-street-indexes-declined-against-us-duties/
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