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Overnight Markets: US stocks fall amid uncertainty over trade policy

Overnight Markets: US stocks fall amid uncertainty over trade policy

Wall Street declined on Tuesday led by energy and industrial shares amid uncertainty over trade policy and other geopolitical issues.

The Dow Jones Industrial Average fell 179 points, or 0.7%, to 24,834. The S&P 500 lost nine points, or 0.3%, to 2,724. The Nasdaq Composite Index lost 16 points, or 0.2%, to 7,378.

US President Donald Trump said he was not happy with the recent US-China trade talks and also raised doubts about the upcoming North Korea summit. Trump also said the China trade talks “were a start” and that there was no deal with China on ZTE Corp.

Among the day’s biggest decliners were industrial stocks, a sector that is heavily correlated with trade concerns. The group lost 1.3% while the materials sector lost 0.9%.

Among notable decliners in the industrial space, Boeing Co. lost 2.5% while Caterpillar Inc. ended down 1.7%. 3M Co. fell 1.4%. All three were among the biggest decliners on both the Dow and the S&P.

The financial sector rose 0.9% on hopes that a bill aimed at easing bank rules could be passed as soon as this week.

The consumer discretionary index declined 0.3% after warnings from retailer Kohl’s and auto parts seller Autozone. Kohl’s tumbled 9.5%, weighing on other retailers, after forecasting slower growth in the second half of the year.

Also, Autozone plunged 8.7% after warning higher costs would persist due to wage pressure.

Shares of Micron Technology rose 6.4% after the memory-chip maker announced a $10 billion stock-buyback plan.

J.C. Penney Co. fell 6% after the company’s chief executive quit to take over leadership of Lowe’s Cos. Shares of Lowe’s fell 1.9%.

In Asia, shares were trading mixed on Wednesday in morning session after Wall Street retreated overnight in response to Trump's remarks on US-China trade talks.

In Tokyo, Nikkei 225 eased 0.22% and the Topix was off by 0.09%. Meanwhile, the Kospi shed 0.08%. Over in Sydney, the S&P/ASX 200 edged up by 0.24%.

In China, the Shanghai Composite Index was down 0.69%, while Hong Kong’s Hang Seng Index was trading 0.76% lower.

 

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