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Home / Business / Stocks withdraw as American-Chinese trade war fears reignite

Stocks withdraw as American-Chinese trade war fears reignite



US Stocks led Sunday Thursday, with S & P 500 slipping below 2,700, as investors focused on US and China trade tensions, highlighting widespread concerns over slower global economic growth.

What are large indexes?

Dow Jones Industrial Average

DJIA, -1.09%

deleted 285 points, or 1.1% to 25.105, while the S&P 500 index

SPX, [1.2459008] -1.22%

withdrawn 33 points, or 1

.2% to 2.697. Nasdaq Composite Index

COMP, -1.41%, fell 106 points, or 1.5% to 7.268.

What drives the market?

Warjackers resurfaced after the National Economic Council Director Larry Kudlow said during an interview with Fox Business Network that it is still a long way to go before the United States will make a trade agreement with China. Earlier conversations covered "a huge amount of ground", but enforcement will be the key, he said.

CNBC also reported that a meeting between President Donald Trump and China's Xi Jinping is not likely until March 1, but the United States is likely to hold rates of 10% instead of increasing them to 25% as planned. [19659009] A round of weak data from the European Union underlined concerns that slowing growth in China has affected Europe, raising concerns about a weakening global economy.

German industrial production unexpectedly fell 0.4% in December from the month before, and strengthened concern over the health of the eurozone's largest economy. Meanwhile, the European Commission has cut the growth forecast for the single currency bloc, on Thursday, predicting that the 19-member bloc overall will grow by only 1.3% this year, down from the 1.9% forecast in November.

At the same time, investors continue to digest corporate earnings while looking forward to big names like Expedia Group Inc .

EXPE, -0.36%

set to release results after the market closed.

Federal Reserve Mayor Jerome Powell, in a town hall appearance on Wednesday night, said his goal was for the central bank to earn public confidence. The comments came as Fed's criticism for his Monday dinner with President Trump, as someone said, expressing the White House's influence on politics as it came shortly after the central bank unexpectedly shifted to a more bold attitude.

What data and Fed speakers are in focus?

The number of Americans applying for unemployment benefits fell during the week ended February 2, with 19,000 to 234,000, over economists' expectations of 225,000 per MarketWatch survey, but close to historic downturns.

At 19:30 ET, St. Louis Fed President James Bullard, a voting member of the Central Bank's interest rate committee, will speak at St. Cloud State University.

Read: Fed is shifting to Jim Bullard's world by new interest strategy

What do analysts say?

"The excuse for today's correction seems to be related to trade negotiations between the United States and China but for me the biggest factor is that many of the forces that have driven the market over the past few weeks – investors are returning to the bandwagon, Fed. The shift from hawkish to neutral, and the adjustment of expectations after the first wave of earnings reports – has run the course and investors seem to be waiting for the next big mover, "said Colin Cieszynski, Marketing Director of SIA Wealth Management.

Cieszynski predicted that The S&P 500 will move in a range of 2,600 to 2,800 in the near term with volatility rising on uncertainty over any other government peak, trading with the US and China, and Brexit.

"The overwhelming risk issue is curbing global economic growth , "Matthew Forester, chief investing officer at BNY Mellons Lockwood Advisors, told MarketWatch." Recent data, especially from Germany, and Europe in st. Higher degrees are worrying investors, "he said.

"We have also seen that central banks around the world are starting to cut prices and lower growth forecasts," he added. "There is concern that this will lead to a downturn in the US, although we have not yet seen evidence of it."

What shares are in focus?

In Agreement News, SunTrust Banks Inc .

STI, + 8.61%

and BB & T Corp .


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