3 p.m. Den
Dow Jones industrial average
returned all the gains – and then some – after reports emerged that the United States was considering banning portfolio flows to China.
The Dow has dropped 155.18 points, or 0.6%, to 26,735.94, while
has fallen 1% to 2948.82, and
fell 1.6% to 7899.84.
The United States is considering delisting all Chinese companies, according to Bloomberg, and prohibiting US pensions from investing in Chinese stocks. Details remain scarce, and the plan will still have to be approved by President Donald Trump. The Dow had been up for over 100 points when the news broke.
"This story came from nothing and the timing is terrible," writes Oanda's Edward Moya. "US stocks sold strongly and safe harbors so much of Europe has already started the weekends."
The report must come as a shock to investors in the hope that the US and China were close to reaching a trade weapon. It has also caused Chinese stocks to fall, which
iShares China Large-Cap ETF
(FXI) has gone down 1.6% to $ 39.27.
(BABA) has fallen 6.2% to $ 164.09.
Does the US really want to delist all Chinese stocks? My colleague Reshma Kapadia noted that the immediate reaction has been skepticism.
It has not stopped the market from falling.
Markets It is now quick to grasp what is happening with the Dow Jones Industrial Average and other major market indices. Don't forget to check out the rest of Barron's market coverage.
Write to Ben Levisohn at Ben.Levisohn@barrons.com