Economy

Wall St opens lower on trade truce doubts, bond market nerves

Wall St opens lower on trade truce doubts, bond market nerves

World financial markets took another plunge Thursday on concerns that the arrest of a senior official at Chinese telecoms equipment maker Huawei could hinder progress in China-U.S. trade talks.

Analysts said Tuesday's decline in stocks also reflected rising skepticism about a weekend announcement that US President Donald Trump meant to halt new tariffs on China for 90 days while the two countries work out a long-term trading deal.

The Dow is down 511.39 points, or 2 per cent.

Boeing and Caterpillar, two major exporters which would have much to lose of trade tensions don't ease, weighed the most on the Dow. Investors view low long-term bond yields as a sign of worry that growth will be anemic. The Nasdaq Composite fell by 283 points or 3.8% while the S&P 500 Index fell by 90.3 points or 3.2%.

The Dow closed 799 points or 3.1 percent lower at 25,027.

The Dow is up 307.85 points, or 1.2 percent. Citigroup fell 5.4 percent to $61.63.

The price of oil also fell even though OPEC was expected to agree on a production cut to support the energy market.

The S&P 500 lost 63 points, or 2.3 percent, to 2,727.

The jitters helped drive demand for government bonds today, pushing prices higher. In the Treasury market, three-year yields are above five-year ones, foreshadowing the end of Federal Reserve's tightening campaign.

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The sell-off came ahead of Wednesday's closure of US stock and bond markets in observance of a national day of mourning for former President George H.W. Bush. Advanced Micro Devices dropped 10.9 percent to $21.12, while Micron Technology lost 7.9 percent to $36.88.

Apple lost 4.4 percent to $176.69 after the consumer electronics giant was downgraded by HSBC analysts, citing the possibility that iPhone volume and value growth may moderate due to a saturated mobile phone market.

Wall Street is down after plunging 800 points in a single trading day.

Losses in banks, technology stocks and industrial companies outweighed gains elsewhere Tuesday.

The Nasdaq is up 255.03 points, or 3.7 per cent. Small-cap stocks were hit hard, with the Russell 2000 Index falling 68.21 points, or 4.4%.

The U.S. bond markets also triggered the major sell off yesterday as benchmark 10-year notes sat at 2.91% and 2-year notes quoted at 2.79%, taking the gap between the pair to around 11.5 basis points, marginally higher than yesterday's 9.5 basis point low but still the smallest in more than a decade, according to The Street.

Apple lost 1.7 per cent early Tuesday and Bank of America was down 1.3 per cent.

Dollar General sank 5.6 percent after reporting weak results. Germany's DAX lost 1.1 percent, while France's CAC 40 dropped 0.8 percent. The Nasdaq composite gave up 33 points, or 0.5 per cent, to 7,407.

Bond prices rose. The yield on the 10-year Treasury fell to 2.95 percent.